Yes, Americans Are Saving Enough for Retirement

One of my most longstanding and controversial opinions is that the move from defined-benefit pensions to defined-contribution pensions was a success. It’s an especially unpopular view amid stories of retirees who fall through the cracks and a grim market that is pruning many retirement accounts, if not retirement dreams.

Nevertheless, my position is unchanged. Baby boomers, in particular, are going into retirement better prepared than previous generations. The US retirement system certainly has room for improvement. But Americans don’t need more generous pensions, subsidies, or access to private equities and active management. Let’s stick with what’s working.