That’s why it is an ideal model for a new program designed to target workers who don’t have access to a retirement plan through their employers, thereby filling the gap in the current retirement system that is leaving tens of millions of American workers behind.
Helping hardworking Americans build wealth shouldn’t be a partisan issue. It’s time for Congress to work together to ensure that everyone has access to a retirement savings account like the TSP.
Under our proposed savings and investment plan, workers in the bottom income quartile could accumulate median wealth of more than $43,000 within 10 years by contributing 5 percent of their wages. A 25-year-old worker in the bottom income quartile could accumulate more than $600,000 by retirement.