Pensions vital to solve brewing retirement crisis, says think tank

investmentnews.com:

As the financial challenges confronting American workers snowball into a full-blown retirement crisis, the National Institute on Retirement Security has joined the growing chorus calling for action.

According to a new NIRS report, Retirement Insecurity 2024: Americans’ Views of Retirement, which draws from a survey conducted by Greenwald Research, 83 percent of Americans believe that all workers should have access to a pension plan, viewing it as a critical component of a secure retirement.

Echoing that finding, four-fifths (79 percent) of respondents agreed there’s a retirement crisis in the U.S. – an increase from two-thirds (67 percent) in 2020. A little more than three-quarters of workers today (77 percent) also agreed the American dream of retirement has gotten harder to reach following the steady disappearance of pensions.

“A financially secure retirement is out of reach for many Americans, and our research finds workers are increasingly troubled by their retirement outlook,” said Dan Doonan, NIRS executive director and co-author of the report.

With 55 percent of Americans feeling doubtful over their ability to achieve financial security in retirement, Doonan called on leaders to increase pension coverage for US. workers. As some employers like IBM reinstitute pension plans for their workforce, he suggested others follow suit as a way to provide retirement benefits cost-efficiently as well as to compete in an increasingly tight race for talent.

The survey also found a strong majority (87 percent) in favor of Congress immediately addressing the funding challenges for the country’s Social Security system, rather than waiting 10 years to come up with a solution.

“Americans don’t want Congress to kick the can down the