The Continuing Retirement Savings Crisis

By Nari Rhee, PhD and Ilana Boivie
March 2015

The key findings of this report are as follows:

1. Account ownership rates are closely correlated with income and wealth. Nearly 40 million working-age households (45 percent) do not own any retirement account assets, whether in an employer-sponsored 401(k) type plan or an IRA. Households that do own retirement accounts have more than 2.4 times the annual income of households that do not own a retirement account.

2. The average working household has virtually no retirement savings. When all households are included— not just households with retirement accounts—the median retirement account balance is $2,500 for all working-age households and $14,500 for near-retirement households. Furthermore, 62 percent of working households age 55-64 have retirement savings less than one times their annual income, which is far below what they will need to maintain their standard of living in retirement.

3. Even after counting households’ entire net worth—a generous measure of retirement savings—twothirds (66 percent) of working families fall short of conservative retirement savings targets for their age and income based on working until age 67. Due to a longterm trend toward income and wealth inequality that only worsened during the recent economic recovery, a large majority of the bottom half of working households cannot meet even a substantially reduced savings target.

4. Public policy can play a critical role in putting all Americans on a path toward a secure retirement by strengthening Social Security, expanding access to lowcost, high quality retirement plans, and helping lowincome workers and families save. Social Security, the primary edifice of retirement income security, could be strengthened to stabilize system financing and enhance benefits for vulnerable populations. Access to workplace retirement plans could be expanded by making it easier for private employers to sponsor DB pensions, while national and state level proposals aim to ensure universal retirement plan coverage. Finally, expanding the Saver’s Credit and making it refundable could help boost the retirement savings of lower-income families.

Link here.

THE CIA AND THE MEDIA

BY CARL BERNSTEIN

How Americas Most Powerful News Media Worked Hand in Glove with the Central Intelligence Agency and Why the Church Committee Covered It Up

"Among the executives who lent their cooperation to the Agency were Williarn Paley of the Columbia Broadcasting System, Henry Luce of Tirne Inc., Arthur Hays Sulzberger of the New York Times, Barry Bingham Sr. of the LouisviIle Courier‑Journal, and James Copley of the Copley News Service. Other organizations which cooperated with the CIA include the American Broadcasting Company, the National Broadcasting Company, the Associated Press, United Press International, Reuters, Hearst Newspapers, Scripps‑Howard, Newsweek magazine, the Mutual Broadcasting System, the Miami Herald and the oldSaturday Evening Post and New York Herald‑Tribune.

By far the most valuable of these associations, according to CIA officials, have been with the New York Times, CBS and Time Inc.

The CIA’s use of the American news media has been much more extensive than Agency officials have acknowledged publicly or in closed sessions with members of Congress. The general outlines of what happened are indisputable; the specifics are harder to come by. CIA sources hint that a particular journalist was trafficking all over Eastern Europe for the Agency; the journalist says no, he just had lunch with the station chief. CIA sources say flatly that a well‑known ABC correspondent worked for the Agency through 1973; they refuse to identify him. A high‑level CIA official with a prodigious memory says that the New York Timesprovided cover for about ten CIA operatives between 1950 and 1966; he does not know who they were, or who in the newspaper’s management made the arrangements.

The Agency’s special relationships with the so‑called “majors” in publishing and broadcasting enabled the CIA to post some of its most valuable operatives abroad without exposure for more than two decades. In most instances, Agency files show, officials at the highest levels of the CIA usually director or deputy director) dealt personally with a single designated individual in the top management of the cooperating news organization. The aid furnished often took two forms: providing jobs and credentials “journalistic cover” in Agency parlance) for CIA operatives about to be posted in foreign capitals; and lending the Agency the undercover services of reporters already on staff, including some of the best‑known correspondents in the business."

“One of the things we always had going for us in terms of enticing reporters,” observed a CIA official who coordinated some of the arrangements with journalists, “was that we could make them look better with their home offices. A foreign correspondent with ties to the Company [the CIA] stood a much better chance than his competitors of getting the good stories.”

Link here.