Author:
Baily Martin Neil,Harris Benjamin H.
Abstract
AbstractThe best way to build retirement preparedness is to fix the system we have. The most important step is to ensure that more people have access to a retirement account at work. The government could mandate that all employers provide accounts, but small employers would strongly resist it. Instead, policymakers should provide tax incentives to companies to cover the cost of setting up retirement accounts. They also could create a government-run program available to everyone, and many states have begun to do so. In addition, they should reform the savings incentives for families. The annual federal tax break on retirement savings provides around $250 billion in benefits, and most of it goes to wealthy families. Policymakers should use the same money to help lower-income families build assets in retirement savings plans. This chapter looks at steps that could enhance retirement accounts.
Publisher
Oxford University PressNew York
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