Joins us now. He is the Team Director for the Education Workforce and income security team. What is the Government Accountability . Guest we are the nonpartisan investigative arm of the u. S. Government. We work for committees of congress, the majority leader, the minority leader pelosi and chuck schumer. To requests for information from congressional committees, as well as legislative mandates, sometime a piece of legislation we will ask to look at a particular issue. Host you get those from members of government, but it is the organization taking a look at retirement from the United States . The comptroller general has the authority to initiate work on his own, or issues that he feels are of such National Importance that it is necessary to let the public know of it significance. A comprehensive reevaluation needed to permit Better Future retirement security. Before we going to details, how are we doing us a country in saving for retirement . This the reason we put report out is, for a lot of people in this country, retirement prospects dont look great. Pillarse three major for a contributing to retirement. Social security, employer pensions and private savings. Each one of those is facing real fiscal challenges and fiscal stress. Beial security will only able to pay three quarters of promised benefits by 2035. Private pensions, about half of private Sector Workers do not have access to any sort of Retirement Savings plan. They are ono do, 401 k type plants. They can provide Retirement Income and put more responsibility on individuals. For private savings with the increase in debt over time, although it came down from the recession, increased health care costs. Most Income Growth going to higher income workers. It is increasingly difficult for many working people to save for retirement. Host if you want to get in on this conversation you could do so. Two lines to choose from. If youre saving for retirement and you have questions. Is the number to call. Maybe you are retired where the. Retired already 2027488001 you can also tweet us at cspan. 401 k plans, according to report, as of 2015, 600 93,000 of those plans, what does the number suggest you . Guest there are a lot of plans. Just because you are covered by a plan does not mean youre contributing to your retirement. A lot of times your employer will offer a plan but you actually have to affirmatively contribute. Many employers will provide a match, but only if you contribute yourself. For a lot of workers, even if they are covered, it does not necessarily mean they will have savings and that when they retire. Host that is free money, why arent people taking advantage . People mayt of times not be aware, or even if it is free money, they may have so many other income constraints. They may have a mortgage, may want to have a family. Most Income Growth over the last 20 years has got to the highest 20 of workers. Most of the workers, lower income workers have not seen that Income Growth. Then the Rising Health care cost, which is a problem as well. Youre talking about the people who actually contribute them. Tell us a little bit about the amount of those savings. Is there some type of generic or average amount that is in these types of plans, and how to set number fair up . Guest one of the things we have found is that about 29 of all workers have neither a traditional pension, or any Retirement Savings at all. The people are in these plans, the average amount of savings is depending on what you look at. It could be anywhere between 50000 and 100,000. Retirement, ao may see mike a large amount of money and a lump sum, but for that money to last you a remainder of your retirement years, it is a challenge. It is not that much money. We know people are living a lot longer today. If youre at age 65 today, you have the average lifespan you are looking at if you are a woman is over 88 years of age. Sople are living longer, they will need more money to make it last through those additional years of retirement. Host those are the numbers, they will be on your screen. Charlie is here to talk about this later latest report. Gao. Gov. Ok at if you want to read the report. This is michelle from minnesota. You are on with our guest. You find yourself as a working american, go ahead. Caller yes i am a working american. I have been working since i was 16 years old. My recommendation is to start saving as early as possible. You have to start paying yourself the 10 . Most people way to save money after host youre breaking up a little bit. Caller sorry. Have tont is, people pay themselves first and start saving as soon as possible. A lot of people say they do not have money to save, but they wait until all the bills are paid and then theyd all have money to save. Key is, pay yourself the 10 and then pay your bills. I started saving when i was in my early 20s, i started putting 10 away. 20 away. 2 and a put frankly, i am just a regular person and i am approaching 900,000 in my savings. It, it is just paying yourself first over many years. Host thank you for calling. Guest congratulations. I think that is tremendous you can do that and are committed to that. That certainly will help in your retirement. Area lot of people you right, putting money in first, making it a priority is something that is important that people should do. There are people, for example, who lose their jobs. During the Great Recession a lot of people lost their jobs. Some of them had to take money out of the retirement to avoid losing their homes. You could get very sick. You could take some of the money out. Sometimes it is just really hard choices that people have to face. You are right. Basically, today, people want to have a secure retirement. It will have to start saving and saving regularly at an early age. Host how much should you be saving . She started at 20, start their. Guest the sooner the better. Certainly, i think that is helpful. Wanting to keep in mind is that if there is still some sort of old rules regarding pensions. For example, many Pension Plans, even 401 k type plans will not allow workers under age 21 to participate in the plan. It is something that is an artifact from the early days of orissa. It is the federal law governing pensions in the United States. For these younger workers, even if they want to save, they might not even have the opportunity to save in their employers Pension Plans because i have been excluded. From a retired person in tallahassee, florida, brenda you are next. Caller i retired at the age of around 52. I had Heart Disease and later on had breast cancer. For my disability, i got it after working 35 years. The key was working 35 years. I had to start putting in ira where i worked. From the time i did work. Startedetired, i getting Social Security, medicare and drawing on my ira. At 59 and a half. The key to retiring is to get ,ut of debt, stay out of debt and spend your money wisely. There is one more thing. Inyou sell a home later on life, say you have a second home or something, put them money into a certificate where you are at least earning two and a half percent. On 100,000, that is 2500 the year. Times five years is almost 12,000. Host color, thank you. Guest . Very good guest advice. You have been able to overcome really serious challenges so i applaud you for that. Those are things that people can do if they can save money earlier. Ofthey can take it vantage smartly doing things around doing their home and so on, which raises another issue about financial literacy. A lot of people often do not bestthe rules on what the financial choice and Financial Action for them is to take. That is something as a nation that we have to do some work on as well. Especially on 401 k plans you have a lot of options you can draw on. How much education does a fun have to provide fund have to provide . Guest 401 k s put a lot of responsibilities on individual employees. First they have to figure out how much to contribute. While of course more is better, sometimes you also have to take into account other things going on. Once you are contributing, you have to figure out where to invest the money. How much risk are you comfortable with . What about fees . Some Financial Options cost more than others. Of the problem. Even if youre able to maneuver through all of this and you get to retirement, and you have a good amount of money, you have to figure how to make that money last the remainder of your retirement. How do you spend it down . Do purchase an annuity with part or all of your money . Do try to strategically draw that money down . Do take your money out and invest it . These are things someone has to figure out. Many employers will provide they will bring people into provide information to participants, to their workers to help them. Dont. Y people, they really what they should try to do is get some sort of Financial Advice from a reputable firm. On our twitter feed, they said it should be mandatory contribute to a 401 k plan. At least in the fort in the First Partnership be mandatory. Guest in some of the countries, they already have that. Program they are making it mandatory for all employees to put money into basically a 401 k type account. The problem with making things well, many people have concerns about making things mandatory or universal because, when they have may other financial needs, they may have a sick child, they may have lost their job. Other people are philosophically opposed to being forced to putting money in. Support. A lot of when we did these expert panels, there was a lot of support for contributing to retirement a mandatory or universal action. Host lets hear from a war tired person retired person in west virginia. Iller i graduated in 1963, am 72. I worked up until i was 65 and i thought it would be ok. The biggest part of my 401 k . I never made a lot of money, but i invested in my employer and they put some in. The 2000 7,ring 2008 during the Bush Administration when the stock market dropped from 14 down the seven. I lost half of it so i panicked and took out what i had left. A. Tried to survive on now i am 72 and i am working again. If it is good, then you do good, if it is not, then you dont. People like me made it bad decision, maybe it was, maybe it was not, but at least i got that money. Now i am back to work making small wages again. And i will be here the rest of my life. Host depending on the stock markets for these types of benefits or gains over the years, talk about the risk. Guest that illustrates one of the challenges with a 401 k plan. Particularly, once you get into the retirement phase of what experts call the dq malaysian phase of your financial life, what do you do with that money phase ofillisish and your financial life, what do you do with the money . You should get Financial Adviser someone to help you. There are other things and other options. You could take some of it am purchasing and purchase an annuity. People dont like annuities because you are putting in a lot of money and the returns dont look good. On the other hand it is a guaranteed income for the remainder of your life. There are strategies that one can do to take out strategically, a second amount of money. This is the case where you deed where you do need advice and somebody, from a rep in a person from outside or an employer. Host on the line for working adults, hello. Caller good morning. Keepted to suggest, why Social Security after work so long . Once you pay off your quarters you can earn up to one million. When million dollars, continue to contribute to those quarters regardless of the amount. You may go over it, which is fine. The other question is, why has decided, ifecurity you have a work for a School Security and social , you are not allowed to get both. You are shortchanged. You will not get all your quarters if you have paid them up. I wanted to point out why that happened . That is a great question. First of all, let me talk about the first part. This is facing serious financial challenges and by 2035 it will only be able to pay 70 of promised benefits to people. Congress and the administration will have to act before them to shore up the financial strength of Social Security. Increasing the tax the taxable wage base has been one option. There are a number of people in congress who support those types of proposals. That is one way to get money security and bolster its finance down the road. The other issue about what you are referring to is the andrnment pension offset the windfall emanation provisions. These are situations where somebody who was not paying into the Social Security system for most of their career, but then tried to get Social Security benefit,like a spousal will see a reduction in that benefit. Basically, it is correct to the fact that one that they did not pay into the system for as many years as other people. Also to take into the productivity of the benefits. It is a very complicated area, to it is basically trying assure equity between people who are any Social Security system. It is 96 of the workforce and those who are not. Inc. According to the recent data, 30 of households age 65 or older get 90 of their income from Social Security. The demographic shifts associated with the baby boom have strained Social Security finance. A lot of people depending on this program. Social security account for 33 of all income received by people age 65 and older. Mix of notould be a only Social Security, but what you say for yourself to plan for retirement. Historically, the threelegged stools. Pension, private savings, your own savings and Social Security. Host does this report address Pension Security for those plans that are depending on the stock market . If those people grant them have the ability to make sure they are sustainable . Talked about 401 k plans are ready. There are a lot of traditional plans around the country. Many of these are facing serious financial stress. In particular, they are called multiemployer plans. These are plans created by a bargain agreement. They have employers paying into the system. Demographic shifts, changes in industry, workforces and so on, do not have the money to pay full benefits. Some of them, for example, there are some pensions by 2024 and 2025 will be completely resolve them. Many workers and retirees throughout the country are seeing reductions in their pensions. Be a realing to problem. Congress is looking at it again. They tried to address a few years ago but they are looking at it again right now. This is a really serious issue. Hopefully it will get addressed in the next few years. Host was go to mike in cooksville, tennessee. I worked for about 10 and i only Company Income into af my 401 k . I had to get rid of every pen of it every penny of it. And this obamacare stuff. Back then i would not have had the gun rid of that money. Caller, thanks. Retirees ory americans today are with medicare are health care shocked. 65. Ainly retirees under age a serious illness. Even if youre in the exchanges it can have insurance, be a significant drain on your income. This is a challenge we are facing. As we live longer, people get into the high 80s and 90s and the demand for longterm care , some situation where you get services in your home are moving into a retiree home, they will only be a more of a demand. It is a real challenge we will be facing. Guest universal access to Retirement Savings is one of them. Itt the spend down phase of retirement. Why is that important . Guest the general men who spoke gentleman who spoke earlier, even if you can invest wisely and avoid market problems and save a bunch of money, you are now retired, what you do with your money . You have a couple hundred thousand dollars or more. What do you do . Huddy make sure it lasts the remainder of your life . Provideloyers dont annuity options, they dont provide program where you can get a monthly check out of your to make sure it last the remainder of your life. They simply give you a lump sum. For a lot of people, it can be very tempting to pay off will go on a, they long vacation, give money to their children and people dont realize that while some of this lump sum may look like a lot of you fort has to last another 20 or 30 years. The challenge here is, huddy help people who are retired get this money had he you help them sure at last the remainder of their life . Host peers bill in chicago. There is a Social Security that will work for any pension plan, whether it is pension. R public it should be repaid through deductions at 10 months or less. The advance must be paid before another can be given. Guest the sabean option were one could pay back their Social Security benefits later. You can start Social Security at age 65. You could pay the money back a 70 and get a higher benefit. They got rid of that a few years ago. Longer able to gain the system in that regard. Host the fees associated with 401 k s and how much they should be charged and how you Pay Attention to those. Can be a tremendous drag on earnings. Result in lower account balances. There are regulations if you have a 401 k . Sponsors have to provide you information on the fees associated with the investment offers. They also collect information , whichrvice providers are the most expensive on the relative cost of different options. They can choose to minimize and offer you a platform or portfolio of options that are in fact low fees. Protection for 401 k plans. More on the Retail Market and there is less regulation of fees. Really more disclosure. You get a perspective from somebody, from a service provider. There were probably the research on your own. I know you dont cover capitol hill, but is there anything in the current debate over the tax bill that could affect retirees . Guest they were talking about the contribution limits for 401 k plans. The contribution limit is 18,000 for workers under age 50. It goes up to 4000 for people over age 50. There were talking about lowering the contribution limits then allowing contributions. Posttax dollars, what they call roth of fixation. The difference between a 401 k plan is that you put pretax dollars in. With a individual retirement account you propose tacked all and send posttax dollars in. We will make changes there but it appears that has been dropped. Any significant things going on with the tax plan. Host lisa you are on. My question is, why is it that when you go ahead and you apply for Social Security, they catch your they cut your earnings off. Then you have to go ahead any have to try to work to make up the earnings that they cut off because you cannot keep working and making that Social Security amount higher and higher. I am working right now but they told me i am cut off now and i can keep contributed to Social Security keep Social Security to keep my which is high enough to keep the extra money in the future. I want to know, why is in congress doing something about that there are a lot of poor people out here trying to work and stay alive. Just because we are 66 a may not have anything put away. Congress addressing people like me . I know there have been, in the past, a lot of proposals to reform Social Security. Some people talk about increasing the minimum of benefits, but we have done work on looking at the puzzles to help the benefits received by phone or opal populations by the United States. Low income people, women and other groups. There is thinking on that, but right now, the congress is focusing on tax reform. How was Social Security calculated as far as how much you will get back. The minimum amount to be eligible for Social Security is 40 quarters. That is 10 years. When they do calculate your Social Security benefits they look at your highest 35 years of earnings and they calculate off of that and there is a formula. They calculate your monthly benefit and then they adjusted. Or inflation it is somewhat of a complicated formula, but that is the way it comes out. Once you receive your benefit it is adjusted each year in the cost of living. Host so they just got a 2 raise . Guest yes. You get a larger benefit the longer you are able to wait to claim. If you were going to get a thousand dollars a month of monthly benefits at age 62, if you waited to age 70, which is the longest you can way, you are get 1750 a month. It is quite a significant increase. Many people are not able to wait. They have strenuous jobs or work in construction and got laid off and no prospect for them to get prospect for them. Prospect for them. Host richard in missouri. Retired. Am i just turned 80. Congratulations. Caller i have worked as a Union Carpenter all my life and i got it pretty good pension. It. Id into to so got an job decent pension. I built my own house and my father said Nobody Needed a 35,000 house and i got one. We lived a pretty good life. Social security and medicare to care of us. I hope future generations at forward to Something Like that too. Guest you are really lucky today, those traditional pensions that are disappearing, lots of companies no longer offer them. Even in the union world some of them are underfunded. The challenges for younger people is that now they have to build a pension essentially, build a Retirement Savings account through 401 k plan so it is a different challenge. My father was a Police Officer in new york city, he retired then he worked for a bank and got a traditional pension from them. When he retired, he basically got two checks in the mail, Social Security and he could survive. E had a comfortable retirement it would have been difficult for him. He had a high school degree. It would have been difficult for him to navigate the 401 k world and save up money. He was lucky. Going tohildren are have to take the responsibility of Retirement Savings on their own. Host this is available to the of Government Accountability office. Charlie from the gao talking about it. Thank you for your time. Cspans washington journal, live every day with news and policy issues that impact you. Coming up tuesday morning, the atlantics caroline talks about how the presence and influence of political extremist groups have grown on the internet. Then the latest on nafta renegotiations. The trump administrations trade policy, with Public Citizen global trade watch director and Peterson Institute senior fellow. Carolherald reporter rosenberg explores the future of guantanamo detainees under the trump administration. Be sure to watch cspans washington journal, live at 7 00 eastern on tuesday morning. Join the discussion. Cspan, a couple of panels from the george w. Bush institute. Here is ambassador to the you and, nikki haley on threats to freedom and democracy. We here from former housing secretary mel martinez. Trump announced monday that the United States is designating north korea as a state sponsor of terrorism. Later, we will hear from secretary of state, rex tillerson. A Consumer Advocate Organization recently found high lead levels and fidget spinners. U. S. Public Interest ResearchGroup Education fund will release their educational report on toy safety on tuesday. Watch live coverage on 9 30 a. M. On cspan. A look at argentinas Political Landscape and reforms proposed by the president after its midterm elections. Live coverage from the Hudson Institute starts at noon eastern, also on cspan two. Next, a conversation on freedom, democracy and security. We will hear from former secretaries of state, Madeleine Albright and condoleezza rice. Also nikki haley talks about russian interference in the 2016 election. This event