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A program designed to help people save for retirement has been axed by the U.S. Treasury, writes Katie Lobosco for CNN News.
The Treasury says that the Obama-era savings program, myRA, did not attract sufficient interest from its targeted audience and that the benefits of the program didn’t justify the costs.
It was launched to provide low- and middle-income Americans without access to an occupational retirement plan a vehicle to save for retirement. Similar to a Roth IRA, but sponsored by the federal government, the program had 30,000 accounts after three years, but only 20,000 people had money in their accounts, writes Lobosco.
According to the Treasury, the program has cost $70 million to date, “and was expected to cost $10 million annually going forward,” she adds.
“Unfortunately, there has been very little demand for the program, and the cost to taxpayers cannot be justified by the assets in the program,” U.S. Treasurer Jovita Carranza in a statement is quoted saying.
More: About 50 per cent of American workers do not have a workplace retirement plan.

ARIA provides a forum for an informed discussion on retirement income adequacy, and other related issues, including pension and retirement coverage, and defined benefit pension plans – ARIA pensions blog, 12 Dunlop Street, Barrie, ON, L4N 1V6 – sitemanager@ariapensions.ca

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