The American retirement system is in dire need of attention: the Social Security and Medicare trust funds are projected to be exhausted within the next decade, the vast bulk of tax incentives for saving accrue to the top one-fifth of savers, and retirees increasingly bear the burden for increased risk after they leave the workforce. On Tuesday, June 27, former White House economists Martin Baily and Ben Harris will outline a new paradigm for retirement aimed at improving financial security for millions of retirees by calling on action from policymakers, employers, and households alike. Their conversation will be moderated by Bloomberg’s Peggy Collins.
Drawing from lessons outlined in their new book “The Retirement Challenge,” Baily and Harris highlight a series of necessary changes to the retirement landscape. Acknowledging that our current system of 401(k)-like accounts is here to stay, they lay out a series of incremental policy reforms designed to improve the markets for products like annuities, reverse mortgages, and long-term care insurance. At the same time, they also argue that changes to saving incentives, coupled with better engagement from employers, can help undersavers accumulate more for retirement. Collectively, these reforms could greatly enhance the lives millions of current and future retirees.