We highlighted yesterday how strained our current retirement system is; others are thinking along the same lines. Dean Baker, co-founder of the Center for Economic and Policy Research, a liberal think tank, has an interesting op-ed in the Los Angeles Times about the challenges many Americans are facing in saving adequately for retirement, and the measures some state governments are taking to devise new retirement models:
Although Social Security is a tremendously important program, and provides a solid base that retirees can depend upon, its $16,000 average annual benefit doesn’t go very far. […]
In response to this situation, Illinois is developing a state-run retirement program that will make it easier and cheaper for workers to save. Many other states, including California, are studying this option.