myRA has been the recipient of many critique and analysis in the past few months after its announcement and there has been a wave of uncertainty generated in the minds of the federal employees so as to whether or not it’s the solution that they were after. The gap in our country’s retirement savings is magnanimous and the new program was destined to make it a lot less but experts think otherwise.
Many of the feds and critics lauded the government’s step to make myRA open to applications and to allow the millions of Americans (without retirement plans) to finally up the ante but now it looks as if myRA isn’t going to do the trick. Here’s why:
The account that gets initiated when you sign up for the program gives away almost the same rate of interest as the G fund of the government that the federal employees should know about. This is not just a statement put forward by anybody; this is what the US treasury has to say. The average of the fund over a ten year tenure was around 3.3 percent. myRA is different in its operations though because contributions go straight to the government’s security funds which have really low rates of return.
Many experts believe that the traditional plans that always existed can help in making hefty contributions but myRA can increase the number significantly. The program was introduced to allow the officers that have no retirement procedures applicable to them and the government can only hope that it is going to allow those imprudent souls to finally take actions. Having said that, we have to conclude that things aren’t as clear as you would ideally want them to be. Let’s hope that things turn out well and people of America find better ways of preparing for their post-retirement life.
