You don’t need an employer plan to save for retirement…but it is nice

I’m not sure the purpose of Tweets like this. The are inaccurate and misleading.
Nobody needs an employer plan to save and invest for retirement (although a match from the employer surely helps). On the other hand, long-term saving and investing outside a qualified plan has certain tax benefits too, like paying taxes at dividend and capital gains rates rather than ordinary income plus no required distribution.
Nevertheless, employees can’t be made to wait longer than twelve months and most employers use a six month or less waiting period. Not a crisis.
So, nothing is stopping anyone from saving, nothing.


  1. Every one of her statements are pure BS. But one really stands out for me. What does “We can GIVE every worker a retirement plan” mean? Do you really need a retirement plan under AOC’s GND (which failed) if she gives money to people who do not want to work? Or presidential hopeful Yang with his universal basic income, why would you need a retirement plan.

    I do not know of any workers or non-workers who are prevented from saving at anytime. It is just a matter of taking a little personal responsibility.


  2. The magical phrase is “we can give”. Data confirm that a perfectly acceptable tax preferred retirement savings plan has been in place since 1982 – it is called the Individual Retirement Account or (IRA). It is adequate in that – saving the maximum each year would more than prepare workers, combined with Social Security, for a financially successful retirement (in terms of income replacement). More importantly, few save for retirement at the levels already permitted for IRAs – the annual maximum is $6,000 (tax-deductible or Roth) and $1,000 more is permitted as “catch-up” for those who are age 50 or older.

    Give … in this context … basically means using other people’s money to buy votes.


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