Lawmakers have the power to help ensure Americans don’t outlive their savings, according to the TIAA, a leading financial services provider.
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“Lawmakers and the private sector have to get more people involved in savings,” TIAA CEO Roger Ferguson said to FOX Business’ Maria Bartiromo on “Mornings with Maria.”
As part of an effort to help clients secure their golden years, they have identified that the U.S. retirement savings system has three major weaknesses:
Coverage gap: Not enough Americans have access to a workplace retirement plan like a 401(k).
Savings gap: Even if they have access to a retirement plan, they aren’t saving enough money. And
Guarantee gap: People are not managing their saving to avoid outliving their money.
“Lawmakers and companies need to take advantage of tools that are out there, such as annuities, which can in fact close down the guarantee gap,” Ferguson added.
Since the financial crisis over a decade ago, American’s have gradually increased savings even though they are uncertain about the future, Ferguson said.
“While we are in our company recognizing retirement comfort, I think broadly speaking in America there’s a lot of discomfort and uncertainty on our economy,” he said.