Keating Wants U.S. Commission On Long-Term Savings
The United States should establish a Presidential Commission on the issue of long-term savings and consider a mandate that individuals devote a portion of their salaries to savings, says the president of the American Council of Life Insurers.
Emphasizing that his views on mandated savings are his own and not necessarily those of the ACLI, Frank Keating says the average savings rate of Americans, about 2% of income, will not permit most retirees to enjoy the standard of living they expect.
Other countries, he says, already require their citizens to save for their own retirements, and the savings rate in much of Europe and East Asia ranges from 10% to 20% of income, much higher than the United States.
Keating spoke at the National Press Club on the afternoon before President Bush delivered his State of the Union message, in which the President was expected to once again promote Lifetime Savings Accounts.
LSAs would allow individuals to place money in accounts that earn interest tax-free and to withdraw money from those accounts at any time for any purpose without penalty.
Keating says he appreciates the Presidents interest in savings, but the incentives should be for long-term savings. LSAs, he says, are not good public policy.