US executives’ pensions soar in value [View All]

[Hannah Bell]

A recent study conducted by Sun Life Financial, whose findings surprised even its own authors, revealed that some 65 percent of Americans now believe they will have to work longer than they had anticipated, up 11 percent since a similar poll carried out at the end of 2008...

Only 22 percent of American workers, according to Sun Life, are “very confident” that they will be able to take care of medical expenses and less than half (40 percent) are confident that they will have enough money for “basic living expenses” in retirement. “Overall, less than one in four workers are very confident they will be able to live the kind of life they want in retirement.”

No such problems for the American corporate elite, who are making sure a considerable portion of the national wealth is set aside for their golden years.

Two Wall Street Journal reporters sifted through the company filings of 340 large US firms and discovered that pensions for their top executives rose by an average of 19 percent last year (“Pensions for Executives on Rise,” November 4, 2009). More than 200 CEOs and other executives received increases in their retirement savings by as much as 50 percent, even as their companies’ stock prices fell by an average of 37 percent and, in many cases, the benefits of employees were frozen or slashed...

In short, American corporations are using all manner of ingenious means to further enrich the already fabulously wealthy corporate aristocracy.

Meanwhile, according to Retirement USA, an organization set up by the AFL-CIO, SEIU and various advocacy groups, for workers ages 55-64, the average 401(k) account—on which millions now solely rely for their retirement—was $40,000 in 2006.

A Florida newspaper observes understatedly, “Making $40,000 last for 20 years of retirement is difficult, especially when you consider that the average yearly Social Security benefit is $13,929.”

Approximately one-third of American households have no retirement savings whatsoever.

http://www.wsws.org/articles/2009/nov2009/reti-n04.shtml