The Retirement Gamble

This disturbing PBS-aired Frontline documentary opens with a harsh statistic: approximately one-third of Americans have no retirement savings. The most popular current vehicle for retirement savings—the 401(k) program—is used by 60 million Americans, but the vast majority have no true idea how it works. Complicating matters is the economic tumult of the past dozen years: namely, the dot-com collapse and the recession following the bursting of the housing bubble that depleted the investments of millions of people. Correspondent Martin Smith uses his own retirement-planning woes—which he dubs “my own personal fiscal cliff”—to highlight the problems faced by a number of white-collar workers who have discovered significant flaws in their respective 401(k) plans. Part of the problem stems from the financial services industry itself, which levies seemingly inscrutable fees that pick away at earnings, while also pushing investors into mutual funds even though index funds arguably offer more stability and security. Also noted here is how lobbyists have successfully prevented the U.S. Department of Labor—the agency assigned to regulate employee retirement plans—from trying to bring about any degree of federal reform regarding fiduciary responsibilities. An alarming portrait of Americans facing a future with severely inadequate financial resources, The Retirement Gamble is scarier than any Hollywood monster movie. Highly recommended. Aud: P. (P. Hall)