Come Saturday Morning: Social Security is Safer than Your 401K
The nation’s financial and economic crisis provided a stress test for the nation’s public and private retirement system.
The 2009 Social Security Trustees report released Tuesday provides a basis for assessing how each held up. On the one hand, assets in 401(k) accounts — which are predominantly in stocks — have declined in value by about a third, employers are suspending matching contributions, and millions of unemployed workers have seen their retirement savings efforts disrupted.
On the other hand, the Social Security Administration continues to send out monthly checks to 35 million retirees and their spouses, 9 million disabled workers and their families, and 6 million families whose breadwinner has died. In other words, the government system has proved to be much less fragile than the private system of retirement savings.
Then again, if you’ve been reading FDL pieces like this one, you probably already know this..