HAS 3240_ Critical Thinking



Weber State University *

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Dec 6, 2023





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Tyler Christensen Critical Thinking 12-9. What can retirement benefits specialists in the United States learn from the successful experience of the Australian Superannuation retirement program? Do you think that American citizens would support a law that requires that 9 percent of employee salaries must be contributed into a 401(k) retirement fund? Explain your reasoning. I think that the first thing to learn is that social security was not the best solution for a population that will continue to grow and live longer. I think that we can use what they are going here for the retirement of the U.S citizens. I think that part of the reason that Americans are not using their 401k is because they think that social security is a better option. If we were to take away social security or change the requirements it would help to make the American people more responsible for their retirement. We would see a large increase in 401k and other retirement options open and deposits increase. I think that this applies to the law if they knew that this was the next initiative to social security then it would be supported. 12-10. Although Australia’s Superannuation program has been successful, experts have pointed out a flaw in the design—it does not provide for an annuity option for most of the retirees. An annuity provides a consistent retirement income that continues for the life of a retiree and it is created when individuals voluntarily roll over their retirement fund accumulations into the annuity. Why do you think experts consider that the lack of an annuity option in the Superannuation program could be a problem for Australian retirees? I think this is a problem because the funds that are put into a 401k can fluctuate from month to month and most people that are retired like to live on a fixed income. This is because they like to be able to plan for the expenses that come. It is a more friendly lifestyle. However I can see why Australia has not put that into the retirement program. This is because the people that would have to pay the extra balance on a month that went low in the 401k would be the government. They don't want to be responsible for the extra money on a month that does not do as well. However, this could be a problem because of the reasons that i have said the 401k is
Tyler Christensen based on how well the market is doing and if it is a bad month in the market it will be a bad month for the retirees.
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