Saturday, May 26, 2018
Opinion

Column: Way to a more secure retirement: myRA

As President Barack Obama made clear in his State of the Union address, it is time to focus on restoring opportunity for all. That means helping to make sure more Americans can take part in our growing economy and build some economic security for the long term. To get that done, we are putting forward real, concrete solutions to our most pressing problems — from college affordability and job training to fair wages and a stable retirement.

Now, when it comes to retirement, you would think that the vast majority of working Americans would be putting some money away for their future. But the truth is, many are not. For millions of working men and women, it is not easy to save for the long haul. Many employers do not offer a retirement plan. And setting up a retirement account and maintaining it can often be too difficult, expensive and time-consuming.

The statistics paint a stark picture. Only about half of all workers have access to an employer-based retirement plan, such as a 401(k). And left on their own, few workers save. It is estimated that fewer than one out of 10 eligible workers actually contribute to an IRA.

Still, every American deserves the chance to build a secure retirement. That is why the Obama administration has designed a new way for working Americans to start saving for the future.

This program, which will begin later this year, is called myRA or My Retirement Account. This account is designed to help low- and middle-income workers, who are too often overlooked or ignored, begin saving for retirement. We are talking about the waitress who is holding down two part-time jobs to support her kids; the recent graduate who landed a job but is grappling with student loans; the janitor who has never been given the chance to invest in a retirement account.

Here is how myRA, which is simple, safe and affordable, will work.

You will be able to start saving with an initial deposit of as little as $25 and contribute as little as $5 each payday. If an employer chooses to participate, contributions are made through automatic payroll deductions, making them hassle-free.

There are no fees — 100 percent of any contribution goes into the account and is invested in a Treasury security. That means it will be backed by the full faith and credit of the United States, will earn the same interest rate that is available to federal employees for their retirement savings, and the balance will never go down.

Finally, myRA is not tied to any one employer — it belongs to the worker, not the workplace.

In other words, the account is portable and can be easily rolled into a Roth IRA. And if myRA savers ever need to, they can withdraw their contributions tax-free, at any time.

MyRA is a specific way in which we can help hardworking Americans save for the future. But there are other things we can do. In particular, the president has consistently called on Congress to help tens of millions of middle class Americans save for the future by opening up access to automatic IRAs in the workplace.

And we will continue to look for ways to help increase economic security, strengthen the middle class, and provide more ladders of opportunity into the middle class. That is how we will help make sure every American can take part in this recovery. And that is how we will help usher in a stronger, more prosperous future for our country.

Jacob J. Lew is secretary of the U.S. Treasury.

© 2014 McClatchy-Tribune

Comments
Editorial: Welcome Bayshore changes still canít stop bad judgment

Editorial: Welcome Bayshore changes still canít stop bad judgment

Itís human nature in following any tragedy to imagine: How could this have been prevented? On that score, the city of Tampa responded appropriately to the deaths this week of a mother and her toddler whom police say were hit by a teenage driver racin...
Published: 05/25/18
Editorial: Filling Rocky Point lagoon to build townhomes is an empty-headed idea

Editorial: Filling Rocky Point lagoon to build townhomes is an empty-headed idea

One of the worst ideas in a long time in the field of urban planning received a blessing this month when the Hillsborough County City-County Planning Commission approved a land-use change for a project that calls for filling three acres of water insi...
Published: 05/25/18
Editorial: Searching for the real Adam Putnam

Editorial: Searching for the real Adam Putnam

Send out an Amber Alert for Adam Putnam. The red-haired, affable fellow who has served capably as a state legislator, member of Congress and agriculture commissioner is missing. In his place is a far-right caricature who has branded himself as a prou...
Published: 05/24/18
Updated: 05/25/18
Editorial: A strong economic case for restoring voting rights for felons

Editorial: A strong economic case for restoring voting rights for felons

Floridians are paying a steep price for a system that makes it as difficult as possible for people who leave prison to reintegrate into civic life. Gov. Rick Scottís clemency process isnít just archaic and cruel ó it also wastes enormous public resou...
Published: 05/24/18
Updated: 05/25/18
Editorial: Trump right to cancel North Korea talks on nuclear weapons

Editorial: Trump right to cancel North Korea talks on nuclear weapons

Regardless of the reason, the cancellation of the U.S.-North Korea summit to address Pyonyangís nuclear program is hardly the worst possible outcome of this high-stakes diplomatic gamble. President Donald Trump was unprepared, North Koreaís Kim Jong ...
Published: 05/24/18
Updated: 05/25/18

NFL kneels before the altar of profits

The owners of the 32 National Football League teams sent a wrongheaded and, frankly, un-American message to their players Wednesday: Expressing your opinion during the national anthem is no longer permitted."A club will be fined by the League if its ...
Published: 05/24/18

Editorial: A positive first step in ensuring student access at USFSP

As a task force sorts out countless details involved in folding the University of South Florida St. Petersburg back into the major research university based in Tampa, ensuring access for good Pinellas students remains a concern. An enhanced cooperati...
Published: 05/23/18
Updated: 05/25/18
Editorial: Banks still need watching after easing Dodd-Frank rules

Editorial: Banks still need watching after easing Dodd-Frank rules

Legislation that waters down the 2010 Dodd-Frank law and was sent to President Donald Trump this week is a mixed bag at best. Some provisions recognize that Congress may have gone too far in some areas in the wake of the Great Recession to place new ...
Published: 05/23/18
Updated: 05/24/18
Editorial: Honoring our fallen soldiers on Memorial Day

Editorial: Honoring our fallen soldiers on Memorial Day

The rising tensions with Iran, the resurgence of violence in the Mideast and the uncertainty over a nuclear disarmament deal with North Korea combine to create an unsettling time this Memorial Day. These grave threats to peace are another reminder of...
Published: 05/22/18
Updated: 05/25/18

Another voice: The chutzpah of these men

A new phase of the #MeToo movement may be upon us. Call it the "not so fast" era: Powerful men who plotted career comebacks mere months after being taken down by accusations of sexual misconduct now face even more alarming claims.Mario Batali, the ce...
Published: 05/22/18
Updated: 05/23/18