101211: Improving the Retirement Prospects of Lower-Wage Workers in a Defined-Contribution World

About the Course:

Lower-wage workers have always faced challenges in saving for their retirement years. As U.S. businesses increasingly adopt defined-contribution pension plans and emphasize individual responsibility and choice, what is the impact of this shift on the working poor? Lack of pension coverage is a significant concern because Social Security alone will not assure a comfortable retirement for lower-income workers. Our survey of more than 300 lower-wage service workers revealed that significant predictors of retirement savings behavior included greater financial literacy as well as greater job stability, stronger workforce attachment, and higher income. Employer-sponsored pension plans were the most frequently used savings option. Based on the findings, we explore the potential impacts of the Pension Protection Act of 2006 (PPA) on lower-wage workers’ retirement security and propose policy steps to reduce the risk of poverty being recycled into postretirement years. COURSE SYLLABUS I. Background II. Methods III. Results IV. Policy Implications

Journal/Publisher:

Families in Society

Publication Date:

2007/Vol. 88, No. 3

Author

Judith G. Gonyea, PhD, MSW

About the Author:

Professor, Boston University

Recommended For:

This course is recommended for social workers, counselors, psychologists, and other human services and behavioral health professionals who seek knowledge about working with lower-wage clients and their retirement and pension plans. It is appropriate for participants with beginning and intermediate levels of knowledge about the topic.

Course Objectives:

1. 1. Identify significant predictors of retirement savings behavior and challenges faced by lower-wage workers.

2. 2. Explore policy steps to reduce the risk of poverty being recycled into postretirement years.