Finally, a Retirement Plan for Job-Hopping Millennials

[elleng]

'Workers in their 20s and 30s are changing jobs at a record pace, yet they often view retirement stability as a back-burner issue.

A law passed in Maryland last summer could give those without conventional pensions or 401(k) plans a way to save for retirement without the nuisance of setting up individual savings accounts. But despite broad bipartisan support in the state, the application of the law has now stalled with a new Republican Congress and White House.

Maryland is one of only a handful of states to try such a plan, which eases the costs and strain for smaller companies wrestling with retirement options. This city’s boutique tech firms, brick-lined coffee shops and retooled public schools attract a younger, urban population for which the new law could be indispensable.

Small employers would need only allow for automatic payroll deductions, and their employees could access a portable retirement plan with money that moves with them from job to job, without the hassle of the forms and transfers that go with leaving a company 401(k) program.'>>>

https://www.nytimes.com/2017/02/28/business/retirement/finally-a-retirement-plan-for-job-hopping-millennials.html?

[LisaM]

1. Interesting.

Would it apply in all cases? I mean, if they choose to job-hop (versus leaving jobs for perfectly good reasons or being laid off or whatever). It seems to me that should factor in.

[ret5hd]

3. Why should it not apply to "job-hoppers"?

[LisaM]

4. Why should it?

Benefits are earned as part of a mutual pact between employers and employees. I agree that in a number of cases, employers breach this. They've turned the tables on the model of the person who devoted a lifetime of work to a company and was suitably rewarded. People are wrongly fired, too. I get that. I think that the model described above solves some (not all) of those problems.

However, if a person takes a job where they've signed him on with office space, benefits, maybe a gym membership, a subsidized cafeteria, insurance, etc., but he or she has the sole intention of using it as a resume fluffer, well, I have more mixed feelings about it.

[ret5hd]

5. It's the employees money. It's a state-run IRA it sounds to me.

[TreasonousBastard]

2. Finally! Whole bunchesof people have been working on portable retirement plans...

Since it is a good idea, it's no wonder the White House is setting up road blocks.