Report shows employee benefits decreased in last ten years

For further validation of the point made in the last entry, CNN Money has special report in its Jobs & Economy tab titled Workers lose traction over past 10 years regarding the findings of a 2006 edition of The State of Working America from the Economic Policy Institute. Does the younger generation realize the current state of the economy and the trend lines in the economy? Can they see how, despite the 33% growth of “quantity and quality of what workers produce per hour” between 1995 and 2005, the hourly wage increase has only been 11%? Therefore, everyone is expected to work more and be responsible for more, but not be compensated commensurate to these added responsibilities.

One important finding: The number of private sector companies that sponsor a retirement plan decreased to approx 60% in 2005 from over 66% in 2000. Health insurance coverage also fell from approx. 45% to 40% during the same timeframe.

Given all this, the younger generation can’t depend on their employers to help them with their retirement (as we said in the previous post, the government won’t be able to help either—their resources will be depleted after helping the Boomers).

Therefore, it is time to get an action plan. You are never too young to start a plan for your parents, your children, and also, for yourself.