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Saving for Retirement: Should Your 401(k) Be Eliminated?

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Retirement savings are essential for financial security, but data show that many people in the United States lack sufficient funds for retirement. High healthcare costs, living expenses, and inflation make it challenging for many to save enough. Meanwhile, Social Security is facing solvency issues. Without reforms, the latest estimates indicate future generations’ benefits could be in jeopardy as early as 2035.

Enter economists Alicia Munnell, director of the Center for Retirement Research at Boston College, and Andrew Biggs, senior fellow at the American Enterprise Institute (AEI). They propose abolishing tax-sheltered savings plans like 401(k)s and IRAs to bolster Social Security. 

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