As of June this year there were over 160,000,000 Americans in the workforce [i]. Ask what Labor Day means to them you’ll hear them talking about their 3-day weekend, spending time with friends and family, or lamenting over the unofficial, official end of summer.
We’ve come a long way since the days of child labor, unsafe working conditions and the 12-hour work day – all part of the labor landscape at the turn of the 19th century. We now have an official day off every year, 40-hour work weeks, vacation, sick days and so much more. And with the establishment of company pensions and 401(k) savings plans, we have the ability to prepare for our retirement in the workplace. As a nation, we have a lot to celebrate!
Did you know?
Half of America's private sector workforce is not covered by a retirement savings plan offered in their workplace; their retirement will be anchored only by Social Security and whatever they have managed to save on their own. The other half will supplement their Social Security benefits with employer-sponsored retirement savings options like a traditional pension or a 401(k) investment plan. Today, twice as many workers have a 401(k) than have lifetime pensions, a complete reversal from just 25 years ago. [ii]
While Congress made Labor Day official in 1894, two decades earlier in 1875 The American Express Company established the first private pension plan in the United States in an effort to create a stable, career-oriented workface.
Here’s America’s Evolution of Saving for Retirement:
Have a great Labor Day from all of us at PAi. Our Vision: A world where workers own their own retirement readiness.
[i] Retrieved from https://www.census.gov/prod/2013pubs/acsbr11-09.pdf
[ii] Retrieved from http://www.pbs.org/wgbh/pages/frontline/retirement/need/#1
[iii] Timeline of Retirement: URL: Retrieved from http://scholarship.law.georgetown.edu/cgi/viewcontent.cgi?article=1049&context=legal