Nonunion Retirement Crisis

In 2006 just 14% of nonunion workers in America had employer provided pension coverage. When you compare this with the 68% of union workers it’s not hard to see how one decision can make a world of difference in a person’s life. More and more employers are shifting the burden of retirement to employees. With the Bush administration pushing for the replacement of traditional pension plans with self directed 401K plans, you have to wonder, “What will happen to the workers who outlive their retirement savings?” Will nonunion workers be forced to work additional years? How does such a move affect the quality of a person’s life?



A recent study out of Boston College showed that 401K plans return less on investments than traditional pension plans. Are studies like these going unnoticed by workers at so called “merit-shops?” There’s a blog post on the AFL-CIO website written by Tula Connell entitled, A Key Solution to America’s Shrinking Middle Class: Union Membership. I would recommend that anyone considering working for a nonunion employer especially in the construction industry, read this article before making such a decision. All too often, people put off planning for their retirement until it's too late.