President touts 'myRA' option for workers without savings
(WJLA) - With five children, divorced working mom Corretha Wood says it’s hard to save for retirement. Still, she does what she can with each and every paycheck.
"Oh yeah, definitely -- you have to think about retirement age, because we all -- if we're blessed to see it -- we want to enjoy it," says the P.G. County metro worker.
But experts say that a majority of Americans don’t plan well, with no retirement savings or not nearly enough of it.
"I wish I had been able to start younger, I wish that I'd been able to contribute more," says 50-year-old worker Robert Michael. "It doesn't have nearly as much as it should or could."
In Pennsylvania, President Obama promised to bypass Congress in order to create the "myRA" account, aimed at workers without employer savings plans.
“I'm going to sign a presidential memorandum that would direct the Treasury Secretary to a new way for working Americans to start their retirement savings," he said.
Financial planner Anne McCabe Triana is glad the president is drawing attention to what she calls the retirement savings crisis in this country – but by basing the new myRA on the current government 401k plan, she worries it won’t deliver a strong enough return on investment.
"It earned 1.9-percent last year, so I think the president and I have a different idea of what a good rate of return is," says the managing partner for CAM Capital Wealth Services,
McCabe says instead, the White House could do more to educate workers about the retirement plan already created by Congress, and increase the maximum contribution workers can make:
“We have an amazing retirement vehicle that exists right now called a Roth IRA. Why don't we spend some time educating people on the benefits about that?"