In his State of the Union address Tuesday night, President Obama indirectly admitted what U.S. employees have long known: Retirement security stinks in this country and 401(k)s are not the answer.
Retirement accounts should be universally available — you shouldn’t have to depend upon an employer to offer them. That’s why the president is making these proposals in addition to raising the minimum wage to $10.10 an hour:
* “myRA” ”Our retirement system should help these potential savers and encourage them to begin building their retirement security,” the White House said in a statement prior to the speech. “The President is using his executive authority to create “myRA” (my Retirement Account) – a new simple, safe and affordable “starter” retirement savings account that will be available through employers and help millions of Americans save for retirement. This savings account would be offered through a familiar Roth IRA Account and, like savings bonds, would be backed by the U.S. government.”
In his State of the Union speech, the president pledged to “Offer every American access to an automatic IRA on their job.”
The prior White House statement expanded on the rationale:…