We need ...

... MORE HELP AT WORK.

Too few workplaces offer education and financial advice to their employees.

Companies can also do more to help workers save an adequate amount by automatically enrolling workers in their 401(k) and increasing the amount they save each year by a small amount. And they must do more to try to attract those workers who tend not to participate - low-income workers, minorities and young workers.

... TRANSPARENT AND REASONABLE FEES.

Do you know how much your 401(k) costs? I'm guessing you're familiar with the expense ratio that is charged by individual mutual funds within your 401(k). But did you know there are sometimes revenue sharing fees for marketing and administrative costs that take a bite out of your performance? And that some retirement plan providers will make more money pushing investors into certain funds?

The fee structure of some retirement plans is so convoluted that even the employer offering the plan can't understand it. Most people are already at risk of running out of money in retirement; the financial industry shouldn't speed up the process by charging excessive fees to pad executive salaries. Testifying before the Senate's Special Committee on Aging last week, Barbara Bovbjerg of the General Accounting Office called for expanded fee and compensation disclosures. I'm with her.

... GUARANTEES.

Any near-retiree who took too much risk and lost large sums of money in this downturn is probably yearning for the pension-plan era and the steady paychecks that came for life. The retirement planning industry knows workers are hungry for guaranteed investment options and are devising products to save assets for retirement and convert those assets into an income stream during retirement. One in five Americans will outlive their retirement assets, according to a McKinsey & Co. report. Whether it's with an annuity or retirement plan insurance, Social Security or another guaranteed retirement account run by the government, we desperately need some baseline of income protection in old age. And we need it to be offered at an affordable price.

... TO REVISE EXPECTATIONS.

We've been practicing this one. As the stock market tumbled, workers reevaluated their plans to leave the workforce and retirees adjusted their lifestyle. We need to let go of the image of a 30-year, all-expenses-paid vacation and plan on working longer. With pensions on the outs, Social Security feeling the squeeze and portfolios expected to grow more slowly going forward, it's unrealistic for many of us to raise families, take care of aging parents and still save enough to afford this fabled decades-long retirement we've been hearing about. Companies need to make it easier for older workers to stay employed. We also need to continue to save more, even when the recession ends and the shopping mall beckons.

ABOUT THE WRITER:

Kara McGuire is a columnist for the Minneapolis Star Tribune. Readers may send her e-mail at This e-mail address is being protected from spambots. You need JavaScript enabled to view it or follow her on Twitter at www.twitter.com/kablog. Powered by Versicherungsvergleich