Career Calling

January 5, 2015

Retirement Security?

 

The winners in the salary game also have the most retirement security. Writing for Bloomberg, Carol Hymowitz and Margaret Collins compare the situation of Target’s retiring CEO, Gregg Steinhafel, who will receive $47 million in retirement benefits with the average target employee who has $45,000 in a 401 K plan. Workers who have such plans save about $100,000 over their careers, which means an annual return of $4,000 if the rate is as high as 4%. Hymowitz and Collins tell more stories of CEOs and their retirement security, which you may find amazing or disgusting.

What scares me most about this story is what it doesn’t say about young people in their twenties and thirties who either work low wage jobs or have to pay off education loans. How will they even be able to put $100,000 in a 401 ?  Something needs to change soon, or many American workers will face a dark future. Retired CEOs, on the other hand, will be among the few who can live the American Dream.