Most workers today fund their own pensions
Share with others:
In his July 3 letter "The Wiser Course," school employee Bob Hoffmann says he's been paying 7.5 percent of his salary into his pension system and discusses the two choices that new public employees have pertaining to their pensions. He states, "Because of these reforms, state and school employees are essentially funding their own retirements going forward."
Mr. Hoffmann obviously is not aware that the majority of American workers are covered only by 401(k) plans and therefore are funding their own retirements. True, some employers will "match" an employee's salary deferral and some employers also offer a profit-sharing contribution. But most Americans who are not public sector employees have been funding their own retirements through 401(k) plans, IRAs or Keoghs.
DONNA L. WOLFSON
First Published July 11, 2012 12:00 am