A new research has proven that Philadelphia residents contribute the least amount of money towards their retirement benefits. They are hence less prepared for the retirement and may struggle financially in their senior years. The major reason behind the fewer contributions is that most employers don’t provide a provision of retirement savings to the employees. Officials agree that this issue needs to be solved as soon as possible.
The Need to contribute more to Retirement Benefits
The research that says that most Philadelphia residents are less prepared for retirement as compared to the Americans living in other states was done for a city council committee. The committee aims to know how to improve retirement savings. The study was conducted and released by the Schwartz Center for Economic Policy Analysis on Wednesday. It was divulged during a hearing conducted by Council’s Committee. The hearing was on Labor and Civil Service.
The Current Situation
During the hearing, several witnesses testified to the fact that there is a retirement crisis in the U.S. The witnesses also stressed that the retirement crisis in Philadelphia is particularly troublesome. The study exposed that about 20 percent of retirees in Philadelphia are poor and about 30 percent have incomes between 100 & 200 percent of the federal poverty level.
The Reason
Anthony Webb who works at the Schwartz Center for Policy Analysis stated that the reason behind the Philadelphia’s people saving less for retirement is that the employers who offer retirement plans are very few. Even those who offer a plan don’t always participate in the plans. He also added that a high proportion of seniors are nearing closer to poverty and the people who are working right now are also at a high risk of retiring in poverty.
Need For Action
Webb also stressed on the need to offering a retirement plan to people who don’t have any yet. He stated that offering a retirement plan may not help them to have a retirement of their dreams but it will definitely help them to get away from the poverty and near poverty situation they are facing right now. He insisted that the sooner an action is taken in this regard, the higher would be the number of households that get help. When a swift action is taken, they will be able to save a bit more money towards retirement benefits.
