Research

In my new book I propose a practical reform of the private pension system -- a mandated savings program called Guaranteed Retirement Accounts. The federal government subsidizes each account with an annual grant of $600; workers and employers share the rest of the cost equal to 5-percent-of-pay contribution (up to the Social Security cap). The federal government pays a guaranteed 3% rate of return ABOVE inflation , which with Social Security provides, on average, 70 percent of pre-retirement earnings. The $600 refundable tax credit costs nothing if we eliminate most of the tax breaks for 401(k)s and IRAs. We can keep tax breaks for contributions up to $5,000 per year, and lower the grant to $400 per year. I am grateful to the WURF Fellowship at the Labor and Worklife Program at the Harvard Law School and the Rockefeller Foundation for their support.