Troubles Ahead for CA Retirees? Researchers Call for Private-Sector Defined Benefit Pensions

In another study that touches on the retirement status of Californians, researchers from the Center for Labor Research at the University of California, Berkeley found that workers in the Golden State are less likely to have employer-sponsored retirement plans and that Californian retirees are extremely dependent on Social Security. In a report entitled, “Meeting California's Retirement Security Challenge," the study ultimately advocates for private-sector defined benefit pensions. The Bee points out that the researchers found “Social Security provides 79.1 percent of retirement income for those in the bottom quartile of retirees by income, and 70.3 percent for the middle 50 percent.” One of the study’s authors posits that access to a supplemental plan that can provide secure income in retirement is necessary for the state’s workers to retire with dignity. The Bee points out:

“Employer-sponsored pension systems account for just 15.5 percent of income for the middle 50 percent, but only 52 percent of California employers offer pension plans, markedly lower than the 58 percent nationwide. And of those California plans, 61 percent are defined-contribution systems such as a 401k, rather than traditional defined-benefit plans. The researchers project that 46.7 percent of California's workers aged 25-64 will have retirement incomes below 200 percent of the federal poverty threshold.”

You can see the full study below:

Meeting California’s Retirement Security Challenge

Comments

[Elizabeth B]

Great link, but I'm not a fan of having to sign into Scribd using my facebook account in order to get the pdf version. I realize I could have read the full study using Scribd, however, my boss requested I find her the pdf. The only way I could figure out how to get it was to sign in with my facebook account and allow Scribd access to my information. Anyone else find another way? Thank you.

[Editor]

You should be able to download the study from this link w/o facebook: http://www.scribd.com/doc/67324870/Meeting-California%E2%80%99s-Retirement-Security-Challenge