Bernie Sanders targets 401(k) system, says retirement security is slipping for millions
We all know we need to save for retirement. But it’s hard. Inflation has been outpacing wages and even if you do manage to save, it can all be wiped out when you get laid off or have an accident. Is it any surprise that the average worker in the US has less than $1,000 saved for retirement? For decades, As pensions were phased out, Americans have been told to save diligently, invest wisely, and trust that the system will work out in the end. However, market swings, rising costs, and uneven access to workplace plans have left many people uneasy about what their later years will actually look like– even if they’ve managed to put something away. That growing uncertainty has sparked a broader debate about whether the current retirement system truly protects working families or leaves too many behind.
In a Fox News op-ed, Bernie Sanders argues that America’s retirement system is fundamentally broken, writing that it is a “disaster for working people.”
~Financial Freedom Countdown
This article highlights recent talking points by Bernie Sanders. Sanders argues that the shift from guaranteed pensions to 401(k)-style savings plans has weakened retirement security for millions of Americans. The senator contends that the U.S. lags behind other wealthy nations in protecting older citizens and that relying heavily on individual investment accounts exposes workers to market risk and unequal outcomes. As a solution, he proposes expanding Social Security benefits and funding that expansion by lifting the cap on taxable income for higher earners. Beyond Social Security, Sanders advocates requiring employers to offer retirement plans or creating a broader pension-style system that provides predictable income. Whether or not you agree with Sanders, the article underscores that retirement planning is no longer just a personal responsibility debate, but a policy conversation about fairness, risk, and long-term security.
10 questions to ask before you “unretire” and go back to work part time
As the last article pointed out, many people aren’t quite where they want to be in terms of saving for retirement. If you’re a senior who is struggling to make it work, you may have considered taking on a job to help bridge the gap. If that sounds like you, you’re not alone. More retirees are considering “unretiring,” whether to ease financial pressure, regain structure, or simply feel useful again. But going back to work after retiring isn’t as simple as collecting an extra paycheck. Before jumping back into the workforce, you might want to check out this article to see what the pros and cons of such a move are.
A part-time paycheck sounds simple: more money coming in. But that income sits on top of your retirement withdrawals and your Internal Revenue Service rules, which can push you into higher tax brackets.
~Katy Willis, Wealthy Single Mommy
This article lays out ten practical questions retirees should ask before taking on part-time work. It starts with motivation: are you seeking income, purpose, or both? It’s important to really dig down into your rationale so that you can choose something that will help you achieve your goal and avoid disappointment. The article then discusses how added wages can increase your tax bill, potentially make more of your Social Security benefits taxable, or also raise Medicare premiums through IRMAA surcharges and affect income-tested benefits like SSI, SNAP, or housing assistance. On the flip side, working a few more years could increase your future Social Security benefit if you replace lower-earning years. However, the article isn’t all dollars and cents and asks you to consider health, energy levels, stress, and how the job will alter your daily routines and family dynamics. And maybe most importantly, it recommends having an exit plan in case the role doesn’t fit as expected.
Why Every Year You Save, Homes Get Further Out of Reach
Are you a renter looking to buy your first home? Have you been looking for a while? Perhaps you’ve been diligently saving up for a down payment for years but every time you get close it seems like the housing market is just out of reach. Unfortunately, for many in the US, it seems that buying a first home is like chasing a moving target that speeds up just as you get closer. When prices rise faster than paychecks, and monthly payments shift with interest rates, it’s easy to wonder whether the dream is slipping away or simply being reshaped. The frustration many would-be buyers feel isn’t about laziness or poor planning. Today’s market requires you to navigate a market shaped by supply shortages, inflation, investor activity, and policy decisions.
For years, new housing starts lagged behind household formation. That gap created a structural shortage, and economists across major institutions have documented it repeatedly.
~Brandon Marcus, The Free Financial Advisor
If you’re trying to understand why housing affordability keeps drifting further out of reach, this article can help pull back the curtain. Unfortunately for renters, multiple economic forces are working simultaneously to push up home prices. Perhaps the biggest issue is that there is limited housing supply (which can be traced back to slowed construction after the 2008 crash among other factors). At the same time, mortgage rates act as a multiplier: even small increases can dramatically raise monthly payments, while homeowners with low existing rates hesitate to sell, further tightening inventory. Outside of the housing market, general inflation has been high the past few years and this can erode your down payment if your savings aren’t earning competitive returns. The article emphasizes that while these macro trends aren’t your fault, there are still things you can do to help you succeed. Buyers can strengthen their position by securing full preapproval, parking savings in high yield savings accounts, staying flexible about timing and location. While your first home might not be your dream home, these actions can help you start building equity and make it easier to move to your next house.