TIAA-CREF’s CEO Says that All Workers Need Secure Retirement
New York, July 20, 2010
In a speech yesterday to the American Association of State Colleges and Universities (AASCU), TIAA-CREF chief executive Roger W. Ferguson, Jr., said it’s time to “rethink, repair, and restart America’s retirement system so that it provides opportunities for workers to achieve genuine retirement security.”
In a speech to the AASCU Summer Council, a meeting of public college and university presidents from throughout the U.S., Mr. Ferguson called for a system that recognizes the new reality that most workers will be responsible for saving for their own retirement.
Mr. Ferguson underscored four attributes of a system that can ensure all workers have the opportunity to build lifetime financial security. As outlined by Mr. Ferguson, it would:
- Encourage workers to start saving earlier, and to put aside sufficient savings – about 10-15% of income;
- Provide a manageable range of investment options, as well as personalized, objective advice and guidance to understand them;
- Help workers save for health care expenses not covered by Medicare; and
- Offer all workers the option to have guaranteed lifetime income in the form of a low-cost lifetime annuity.
According to Mr. Ferguson, a holistic retirement system would “provide a measure of security similar to what was available under traditional defined benefit pension systems,” and “re-introduce the element of security that has been missing from most private sector retirement plans for the past three decades.”
Full text of the speech is available at http://www.tiaa-cref.org/public/about/news/articles/gen1007_225.html.
TIAA-CREF (www.tiaa-cref.org) is a national financial services organization with $426 billion in combined assets under management (as of 3/31/10) and provides retirement services to the nonprofit and government fields.
Chad Peterson, Director, Corporate Media Relations
firstname.lastname@example.org, 704 988-6811; Cell: 917 715-9083
TIAA-CREF Individual & Institutional Services, LLC and Teachers Personal Investors Services, Inc., members FINRA, distribute securities products.