Younger workers are also heavily represented in low-wage jobs. In 2020, those under age 25 made up less than 20 percent of hourly paid workers butEven if low-wage workers have a 401-retirement plan, they often cannot afford to take advantage of this benefit.by the Institute for Policy Studies and Jobs with Justice examined the retirement divide within some of the country’s leading low-wage employers. At Walmart, for example, 46 percent of employees in the retailer’s 401 plan havebalances.
Young Americans also appear to be less likely to save for their “golden years” because more and more of them are having a hard time envisioning a livable future., almost three in four young people say the current economic climate makes them hesitant to set up long-term goals. And climate change, of course, has contributed to the pessimism.
To give young Americans a chance of living to see dignified retirements, we need to tackle the short and long-term obstacles to saving: Let’s raise the minimum wage, strengthen labor rights, guarantee housing and health care, and fight climate change. after they hit the wage cap on payroll taxes — which is just $160,200. Even if they make billions, they pay nothing into Social Security on income past that amount.We could shore up Social Security simply by requiring high earners to pay the same share of their total income into the system as ordinary workers. And we should end those special tax privileges for CEO retirement accounts to support a secure retirement system for everyone.