Core Insights - A national retirement survey indicates strong bipartisan support for expanding retirement investment options in the U.S. [3] Group 1: Survey Findings - 30% of registered voters have no retirement savings, and 63% have less than $150,000 saved for retirement, highlighting a significant gap in retirement preparedness [2] - The survey reveals a need for modernization of the retirement platform in America, which is one of the few areas with bipartisan support [3] Group 2: Retirement System Evolution - The retirement landscape has evolved from pension plans, where companies saved and invested for employees, to 401(k) plans, placing the responsibility on individuals [4] - Americans are living longer, with an average retirement duration of 20 to 30 years, compared to 10 to 15 years previously, increasing the need for adequate retirement savings [4] Group 3: Proposed Solutions - Modernizing the retirement system involves creating better products to encourage individuals to save more for retirement [5] - Auto-enrollment in 401(k) plans is suggested as a way to increase participation, where employees are automatically enrolled unless they opt out [5][6] - Approximately 60% of Americans have access to a 401(k) plan, but 40% do not, indicating a need for equal access to retirement savings options [6] Group 4: Investment Access - There is a disparity in access to investment options between those in pension plans and those in 401(k) plans, with a call for equal access to professional management across both types [7] - The introduction of child savings accounts is viewed as a beneficial investment in American capitalism, providing children with early access to capital markets [8]

Core Insights - Traditional defined benefit pensions are declining, with employers shifting the responsibility of saving and investing onto employees [1] - An increasing number of public-sector pension plans are adopting risk-sharing designs, with approximately half of state and local government workers covered by such plans [2] Summary by Sections - **Evolution of Pension Plans** - Risk-sharing features in pension plans gained traction after funding declines post-financial crisis, with a notable increase from 34 plans in 2007 to 80 plans by 2014 [3] - As of 2025, 108 state and local pension plans incorporate risk-sharing, covering about 55% of active members, although this may overstate the actual impact on workers [4] - **Methods of Risk Sharing** - A plurality of plans utilize COLA-based risk sharing, adjusting cost-of-living increases based on pension performance and funded ratio [5] - Some plans only provide COLAs from "excess return" accounts, while others link increases directly to the funded ratio or recent investment returns [6] - Variable employee contributions are another common method, allowing worker contributions to fluctuate based on funding needs, which can affect take-home pay [7] - A hybrid approach is also prevalent, combining a smaller traditional pension with defined contribution or cash balance plans to limit employer exposure to risks [8]