Remarks by the President on Retirement Security

Remarks by the President on Retirement Security 

Transcript

And, finally -- and that's what this little desk here is about -- there's another thing we can all agree on.  If you've worked hard all your life, you deserve a secure retirement.  Some of the folks I met before I came here on the tour, some of these folks have been on the job 15 years, 20 years.  I think your roller has been on the job 38 years.  Let me tell you something, if you work 38 years, at the end of it you should feel like you're going to retire with some security.   

And a retirement used to be a three-legged stool, used to have a pension.  Then you had your Social Security.  Then you had your own private savings.  And you put that all together, and you could retire.  But today, most workers don’t have a pension in America.  Just half work for an employer that offers any kind of retirement plan.  A Social Security check is critical, but oftentimes that monthly check, that's not enough.  And while the stock market has doubled over the last five years, that doesn’t help somebody if you don't have a 401(k).

So what I’ve asked Congress to do is work with me to give more people more retirement security.  Let's fix an upside-down tax code that right now gives the wealthiest Americans big tax breaks to save, but does almost nothing for middle-class folks, doesn't give them the same kinds of tax advantages.  That's not fair.  And we need to give every American access to an automatic IRA on the job, so they can save at work.

Now, I’m hoping that Congress goes along with this, but I'm not going to wait for Congress.  I could do more with Congress, but I'm not going to not do anything without Congress, not when it’s about the basic security and dignity of American workers.  So here's what I'm going to do today.  This is what this little table is set up for.  I'm going to sign a presidential memorandum that directs the U.S. Treasury Secretary, Jack Lew, to create a new way for working Americans to start their own retirement savings.  (Applause.)  And as soon as I sign this, Jack Lew will get the memo.  He is right here.  So I'm going to be able to just -- here, here's your memo. 

And we're calling it “MyRA.”  Not IRA -- MyRA.  And what it is, it's a new type of savings bond that we can set up without legislation that encourages Americans to begin to build a nest egg.  And it’s simple.  Workers can contribute through automatic deductions in their paychecks, just like those of you who have an employer-sponsored pension fund can do.  They can keep the same account even if they change jobs, so they can carry it over.  It’s safe.  These account balances will never go down in value.  They’re backed by the full faith and credit of the United States government.  And it’s affordable.  So you can open an account with as little as $25.  You can contribute as little as $5 at a time. 

But what that means is for those of you who don't have a 401(k) on the job, don't have a pension on the job, don't have a mechanism to start saving -- especially younger workers -- you can get started now.  And in an emergency, you can withdraw contributions without paying a penalty.  So it's a pretty good deal.  (Applause.)  And what I'm hoping is that working Americans will take a look, because I want more people to have the chance to save for retirement through their hard work.  And this is just one step that we can take to help more people do that. 

So this is the opportunity agenda that's going to help restore some sense of economic security in this 21st century economy.  We want jobs that are more plentiful.  We want skills that keep you employable.  We want savings that are portable.  We want health care that’s yours and that's not going to be canceled when you really need it.  We want every American who works hard and takes responsibility to retire with dignity after decades of honest work.  These are real, practical, achievable solutions to help shift the odds back a little bit in favor of more working and middle-class Americans, so that if they work hard, they can get ahead and they can leave something for the next generation.

And that's something that U.S. Steel knows a little bit about.  For over a hundred years, people throughout the Mon Valley and across this country have been punching in at plants just like this one.  You’ve been keeping the furnaces blasting, keeping the cold mill rolling, carrying on the tradition of hard work and determination.  We've got two, three-generation steel workers at this plant right here.  And I know for a lot of you, this is more than a job.  This is a team.  This is a family that you're proud to be a part of. 

Robin Birk is with me today.  Decades ago, her granddad worked for Union Switch and Signal in Pittsburgh, making parts for railroads.  Her dad worked for U.S. Steel for over 30 years, rising to plant manager.  Robin’s been a safety manager here for 23 years.  And I want to share something Robin said.  She said, “When I was growing up, I would think about what my grandfather and father did for a living, and I always thought my brother would be the one who got to work here.  But it ended up being me.  Women before me maybe didn’t have that opportunity.”
 
Now, Robin’s dad, Bernard, who just passed away a little more than a year ago, he was full of pride for this company.  He used to say, “When we bleed, we bleed blue” -- the color of U.S. Steel. 

So that pride has run across generation.  That's the pride that built this company.  And that's the pride that built America.  That’s the spirit we all need today.  That's the resilience, the grit, the determination, and the optimism that keeps the American Dream alive not just for this generation, but for future generations to come. 

That's what I'm going to be fighting for this year, just like I was for the last five years and for the next three years.  And I expect all of you to join me in making sure that we deliver that promise to the next generation.  (Applause.)

And now, I'm going to sign this bill.  Thank you.  God bless you.  God bless the United States of America.

 http://www.whitehouse.gov/photos-and-video/video/2014/01/29/remarks-president-retirement-security#transcript