Stock Slump Cut Deeply into Savings and Threatens to Reduce Workers’ Standard of Living When They Retire, Says GAO, Calling for Improvements in Pension System
February 2, 2010 - Reports & Studies
The White House and Congress will be considering reforms in the private pension system to make the accumulation of money for retirement easier and less risky. The stock market crash in 2008 and the early part of 2009 took a big bite out of retirement savings.
The July 2009 Government Accountability Office (GAO) report, "Private Pensions: Alternative Approaches Could Address Retirement Risks Faced by Workers But Pose Trade-Offs," concluded that if no action is taken to “make the U.S. private pension system more effective in protecting workers from risks to accumulating and preserving adequate savings for the retirement ... a considerable number of Americans face the prospect of a reduced standard of living.” The GAO report also offers further information on retirement risks for older adults.