TIAA-CREF officials are sounding the alarm on retirement security, warning that the demise of the so-called "three-legged" school of retirement funding is leaving Americans less confident that they can fund a comfortable retirement.
To deal with this, a TIAA-CREF official testified at a Senate hearing, employers must emphasize that attaining retirement savings goals is a shared responsibility between employers and employees, and accordingly should offer matching contributions that encourage employees to contribute.
"We believe it is clear the nation is facing a retirement security crisis due to a number of factors, including changes in the way retirement is funded," Edward Moslander, senior managing director, Institutional Relationship Management, at TIAA-CREF, testified.
He made his comments at a hearing called by the Senate Health, Education, Labor and Pension Committee on Savings: Are Workers Saving Enough for Retirement?
He said the problem is occurring because the traditional "three-legged stool," which consists of "defined benefit" pension plans, Social Security, and personal savings acquired through "defined contribution" 401(k)-type accounts, has become increasingly unsteady, Moslander said.
The demise of this so-called "three-legged stool," Moslander said, has created a situation where savings for retirement has become much more of an individual responsibility, and employers must do more to encourage employees to contribute to pension plans.
