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Of course, lower income workers have less economic advantage during their worker lives, but when considering retirement benefits, it is necessary to measure them against one's lifetime earnings -- a successful retirement plan is that which allows one to retain the same basic lifestyle, with minimal adjustments, as they did during their working life (Fox 2009). When it comes to Social Security, this perspective quite obviously puts the middle class at a distinct disadvantage.
Other more complex regulations concerning contributions to retirement accounts create other imbalances. There are limits to the yearly contributions that can be made to individual tax-deferred retirement accounts, usually based on both absolute dollars and percentages of income (U.S. Dept. Of Labor 2009). For many of these accounts, married individuals can maintain separate accounts, in effect doubling the amount of annual contributions that can be made to retirement savings (U.S.. Dept. Of Labor 2009). At the same time, taxes are imposed on most accounts when the money is used, meaning that while large accounts still deliver more in absolute terms a larger percentage of them goes to the government...
Dept. Of Labor 2009).
In essence, retirement is about planning, and planning early. Though there are actually some apparent benefits to being poorer and more at risk, there is really no advantage conferred in real terms. Not only are dollar amounts simply higher the more one earns and the more -- and earlier -- one saves, but the extra money that ends up going to taxes helps to ensure the protection that is offered to the lower classes. This creates long-term economic stability, in theory, and though there are certainly some issues in the current government-sponsored retirement plan, it is the nation's best chance at a comprehensive and secure retirement plan.
References
Fox, Justin. (2009). "The U.S. retirement system: Pretty good on average. But who's average?" Time.com. 24 June 2009. Accessed 17 July 2009. http://curiouscapitalist.blogs.time.com/2009/06/24/the-u-s-retirement-system-pretty-good-on-average-but-whos-average/
U.S. Dept of Labor. (2009). "Retirement plans, benefits, and savings." Accessed 17 July 2009. http://www.dol.gov/dol/topic/retirement/
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