A very good article discusses Vanguard Founder John Bogle's views and work on the retirement system in the United States.
Bogle is a highly vocal critic of the status quo:
"Our nation's system of retirement security is imperiled, headed for a serious train wreck.That wreck is not merely waiting to happen; we are running on a dangerous track that is leading directly to a serious crash that will disable major parts of our retirement system."
There are some interesting and surprising statistics:
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The median individual retirement account (IRA) balance is $55,000.
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Bogle mentions that this $55,000 balance is enough to provide a steady income of $2,200 per year or a bit over $200 per month.
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The typical 401(k) plan only holds $15,000.
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Bogle also mentions that adequate retirement savings would require that Americans save 15% of their income each and every year of their working lives.
The article also discusses Bogle's views on longevity risk, market risk and the use of annuities in the context of the retirement system.
Source: Reuters
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