Why Obama, Romney Threaten Your Retirement

Posted: May 25, 2012 at 2:24 pm

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BOSTON (MarketWatch)Retirement security doesnt seem to be an issue that the candidates running for president want to discuss. But they should, according to growing number of executives in the financial services industry.

In fact, executives and others are demanding that President Barack Obama and Gov. Mitt Romney, the presumptive Republican candidate, lay out their respective positions on various retirement security issues, such as Social Security, automatic IRAs and the like.

Earlier this month, for instance, Robert Reynolds, the chief executive officer of Putnam Investments, asked in no uncertain terms that Obama and Romney endorse the tax incentives now in place for retirement saving programs such as the 401(k) and start debating how to make Social Security solvent.

In short, Reynolds called on the candidates from both political parties to recognize retirement security as not only a vital national challenge, but a key element in solving our nations debt and deficit crisis over the long term. If we solve the retirement challenge it would have a huge benefit for all Americans, Reynolds said in an interview. If someones future is secure, it allows them to do so much more with their lives.

Weeks later, were still waiting.

Obama and Romney have not responded to Reynolds call. So, we set out to learn what each of the candidates positions are on some of the major retirement security issues, and to echo Reynolds plea for action as well.

Social Security

When it comes to making Social Security solvent, a spokesperson for Romney referred us to the campaigns website. And heres what Romney wants to do to fix Social Security:

First, for future generations of seniors, the retirement age should be slowly increased to account for increases in longevity. And two, for future generations of seniors, benefits should continue to grow but that the growth rate should be lower for those with higher incomes.

With just those two simple steps, and no change in benefits for those at or near retirement, America can guarantee the preservation of the Social Security system for the foreseeable future, according to Romneys website.

Originally posted here:
Why Obama, Romney Threaten Your Retirement

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May 25th, 2012 at 2:24 pm

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