Retirement portability and pension adequacy in the United States

Retirement portability is a hot topic globally; as the economy forces job-hopping work life habits on more and more workers, it is necessary to be able to accrue funds for retirement; under traditional pension plans, retirement funding was lost when workers changed companies. The advent of the 402(k) changed that for companies that offered the plans; however, it also pushed more of the burden of retirement planning and preparation onto the wage earner. For low-wage earners, this was difficult because they often had nothing to put aside. The problem of portability is not unique to the United States, and it is likely there are lessons to be learned concerning achieving fairness, adequacy and efficiency in pensions, based on mandatory, universal, portable plans.

Introduction