Poll: America the worried

Income inequality is increasingly hitting the nation's workforce. But now its taking a toll on families' mental well-being as well, a new study reports.

The Marketplace-Edison Research Poll found that while the U.S. economy is rebounding, everyday Americans are still worried about their wallets. In fact, 63 percent of the more than 1,000 respondents said they are sometimes or frequently anxious about their financial situation, while 27 percent said they are not financially secure.

Much of the fear is focused on not being able to pay the bills or having enough money for future needs, according to the poll:

Americans also report “a lot” of fear about paying monthly bills. More than 10 percent fear being unable to make a car payment, more than 10 percent fear being unable to make a mortgage payment, more than 25 percent fear being unable to pay rent and more than 33 percent fear not being able to make a student loan payment. 

More than 30 percent have “a lot” of fear over not having enough saved for retirement, nearly a quarter fear facing an unexpected medical bill and more than 20 percent fear not being able to afford college for their children.

Undoubtedly, these issues are already beginning to play themselves out in advance of the 2016 presidential election. Large swaths of workers aren't happy with the economic status quo, and they are letting the candidates know it.

The Teamsters have been listening and know a new plan is needed. But it is one that needs a buy-in from both sides of the political aisle. That's why the "Let's Get America Working" platform was crafted.

Hardworking Americans deserve some peace of mind. They toil long hours to put food on the table and keep a roof over their head. But due to bad trade deals pushing good-paying jobs overseas, their margins are thinner than ever before. They need help.

Investing in America by improving infrastructure would go a long way to help the economy. And it would help settle the fears of many who have been on the wrong side of the income divide in recent years.

Top CEOs' retirement equal to more than 40% of Americans

Retirement security is a top concern of everyday Americans. That's because they know all too well the consequences of it.

CEOs aren't facing retirement cuts like some workers.

A new report details the wide gulf that exists in retirement savings. The document, released today by the Center for Effective Government and the Institute for Policy Studies, shows that 100 CEOs have as much in company retirement assets as the entire retirement savings of 41 percent of American families.

The average worth of the 100 largest CEO retirement accounts is about $49.3 million. David Novak of YUM Brands -- the parent company of Taco Bell, Pizza Hut and KFC -- had the largest company-paid retirement package at $234 million.

Sarah Anderson, director of the Institute for Policy Studies' Global Economy Project, said the report details yet another symptom of the nation's growing income inequality problem:

The CEO-worker retirement divide has turned our country’s already extreme income divide into an even wider economic chasm. And what few realize is that the trends of expanding CEO pensions and increasing worker retirement insecurity are inextricably linked.

The percentage of private sector workers covered by a defined benefit pension that guarantees monthly payments has dropped from 35 percent in the early 1990s to 18 percent last year. And nearly half of all U.S. workers had no access to any retirement plan at work.

That's unacceptable. That's why the Teamsters have been at the forefront of fighting excessive CEO compensation. The union pushed hard for the Securities Exchange Commission to institute the CEO pay ratio rule approved under Dodd-Frank financial reform legislation passed in 2010, and protested the pay and retirement package of McKesson CEO John Hammegren while the company provided substandard wages and health benefits to employees in Florida.

We also included retirement security as one of its planks in the Teamster's "Let's Get America Working" platform that sets out a path to improve the lives of workers across the country. Because if the U.S. is to succeed, all of those participating in the economy need to get a piece of the pie.

Don't pare back retirement security!

Everyday Americans are finding it increasingly hard to cover their daily expenses. So it's not surprising that saving for retirement is falling behind. But many companies are making it even more difficult by reducing benefits and options for their workers.

Rep. Marcy Kaptur talked pensions on Capitol Hill in June.

A report earlier this year found that the U.S. ranks only 19th in the world when it comes to retirement security, behind Iceland and just barely in front of Slovenia. That's nothing short of an embarrassment for this country. But it is not surprising given the reduction in pensions, the fluctuations in 401(k) savings plans and continued talk of raising the retirement age for Social Security.

The Teamsters have taken an active role in fighting to protect retirees' and workers' nest eggs. The IBT and other unions got behind the Keep Our Pensions Promises Act (KOPPA), introduced earlier this year by Sen. Bernie Sanders (I-Vt.) and Rep. Marcy Kaptur (D-Ohio). It's more essential now than ever.

On Thursday, the U.S. Treasury Department will hold a hearing in Washington on finalizing a rule that opens the door to pension cuts. This would be the first time since President Ford signed the Employee Retirement Income Security Act (ERISA) into law that pension retirement security would be compromised. 

The futures of some 1.5 million workers who are enrolled in about 200 retirement plans nationwide are at risk, and potentially many more in the future if we do not act. The U.S. must take action now and stand up to these cuts. Lawmakers owe it to hardworking Americans who have earned the ability to retire with dignity. They must stand up to these cuts and restore ERISA’s protections before time runs out.

Similar attention needs to be focused on expanding, and not shrinking, Social Security. More lawmakers seem interested in making hardworking Americans work even longer to receive benefits than expanding the successful program to make sure people can have a more comfortable life in their golden years. It's nothing more than a trick, as the National Journal noted:

Raising the Social Security retirement age ... means that future retirees will get smaller payouts than previous ones did after starting to collect benefits at the very same age. The differences can be dramatic, as the following example illustrates: If, under the current cutoff, you’re eligible for $1,000 at age 67, you could instead choose to get $700 a month for retiring at 62 or $1,240 a month for retiring at 70. But if the retirement age was increased to 70—a number mentioned by John Boehner, Jeb Bush, and Chris Christie—the $1,000 benefit at 67 turns into $800, the $700 benefit at 62 turns into $565, and the $1,240 benefit at 70 turns into $1,000. 

These cuts matter significantly on the level of the individual. But, even if Social Security as a whole were in crisis (it’s not), cutting the benefits that people can collect before age 70 wouldn’t even be a particularly effective way of closing any budget gaps: Increasing the retirement age from 67 to 68 would erase 12 percent of the deficit that Social Security is expected to face 75 years from now.

As it stands, nearly two-thirds of retirees count on Social Security for half or more of their retirement income. For more than 30 percent of retirees, the funds make up 90 percent or more of their income. It may not be right, but it is true.

Policymakers cannot in good faith turn a blind eye to these numbers. Everyday Americans are counting on them. It's time to take a stand for workers and retirees who don't have friends in high places. They must do the right thing.