1. The U.S. Retirement System U.S. Department of Labor Employee Benefits Security Administration

3. 1935: workers employed in industry and commerce. 1939: dependents and survivors. 1950s-1980s: more sectors (farm, domestic, self employed, military, some state/local, non-profit, clergy, federal civilian, Americans abroad). Also added benefits for disabled workers. Established in 1935 as a response to the high rate of elderly poverty during the Great Depression. Coverage was expanded over time.

4. Mandatory Covers everyone (almost) Pay-As-You-Go Provides lifelong income support But funding will fall short

5. Taxes $672 Billion Benefits $615 Billion 162 million workers 51 million beneficiaries

6. How Large is the Benefit?

7. Funding Will Fall Short Taxes in Benefits out

8. Voluntary Pre-funded Numerous Wide variety

9. Pensions are Voluntary

10. Pensions are Pre-Funded

11. Major Plan Types Defined Benefit Defined Contribution

12. $ Varies $ Defined Company Retirees

13. $ Defined $ Varies Company Exiting Employees

14. Private Employee Pensions Now Mostly Defined Contribution Defined benefit

15. Private Employee Pensions Mostly Defined Contribution

16. Voluntary, recently low Highly concentrated among the affluent Many ways to save Tax advantages

17. Saving Rate has Fallen

18. Saving is Concentrated Median Amount of: Financial Assets Net Worth Bottom 20%$2,000$8,000 All Families$29,000$120,000 Top 10%$405,000$1,119,000

19. Many Ways to Save