'Retirement could be illusory'

Tuesday on the Pennsylvania Cable Network, Republican Rick Santorum said that, "401(k) plans are skewed towards the rich."

In other words, the rich are in a better position to invest more money into their 401(k) plans.
As a result, under the right conditions, the rich will be able to finance their entire retirement program.

However, statistics show that those individuals making less than $55,000 a year will never save enough money in their 401(k) plans to finance their retirement program.
About 90 percent of all Americans make less than $55,000 a year.

A 401(k) plan is a private account, similar to what Republican President Bush wants to do with Social Security.

Plus, Bush wants to eliminate the cost-of-living-adjustment (COLA) benefit of Social Security.
A COLA is an extremely important benefit in times of inflation and something not found in 401(k) plans.

During periods of high inflation, without a COLA, the fixed retirement incomes of all retirees could be reduced to almost nothing.

For those who are less informed, this means that there is a very good chance that the majority of younger Americans (those under 55 years old) may never realize their dream of retirement.
They simply will not have sufficient retirement income if Bush is successful in his attempts to change the Social Security system for the worse.

The sad part is that these younger Americans will not realize the fallacy of the Bush plan until 20 to 40 years from today.

Nikola (Nick) Drobac
Aliquippa

http://www.timesonline.com/site/news.cfm?newsid=14045107&BRD=2305&PAG=461&dept_id=478566&rfi=6

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