Obama To Create New Plans For Retirement Pensions

September 6, 2009

US (ChattahBox) – President Obama has said this morning that he plans on making it easier for Americans to save for retirement, amidst continuing problems with extra income during the recession.

There are several ways in which the White House now hopes to make it easier for Americans to begin saving for their golden years.

One is to make it so that all retirement plans and 401k’s are automatic for all jobs. Employees would be able to opt out, rather than request to join, the savings program. This has shown to have a great effect in the past.

Another is to allow people the option of receiving their income tax returns as savings bonds, rather than in a check, making it an automatic investment.

Employees may also be able to direct any unused vacation time and pay to a retirement account after leaving a job position, rather than asking for cash to compensate.

“Tens of millions of families have been, for a variety of reasons, unable to put away enough money for a secure retirement,” President Obama said this morning.

“Half of America’s work force doesn’t have access to a retirement plan at work. And fewer than 10 percent of those without workplace retirement plans have one of their own.”

RAW pointed out that pushing for future savings would likely slow our ability to pull ourselves from this recession. However, planning for the long term is equally important, in a time when many go into their elder years with little money and small Social Security payment.

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