US. The ‘Three-Legged Stool’ of Retirement Is Missing a Leg

Once, the tale goes, American workers relied upon a three-legged stool for their retirement income: 1) Social Security, 2) pensions, and 3) personal savings. That metaphor was always rickety, as even at their peak pensions covered less than half of private-sector workers. Today, that figure is 15%. (Government employees are another matter, although those with college educations pay for the pension privilege by receiving lower ongoing wages.) To switch analogies, the middle ground is vacant. Social Security provides subsistence for retirees, while personal savings contribute...