April 7-11 marks the annual event known as America Saves Week, which began in 2007 as a “an annual opportunity to encourage all Americans to save and a chance for individuals and families to take stock of their financial health and preparedness.”
This reflects an entrenched cultural, moral and political belief that it is possible to retire with abundant savings — you just have to learn how to be strategic, budget wisely, save diligently and invest prudently. The reality, however, is that retirement savings are an insurmountable aspiration for many Americans, particularly low-wage workers. Indeed, almost one in four Americans has less than $400 in savings. One-third of Black households have zero or negative net worth. But the government’s response to this overall lack of savings has been to emphasize the need for individuals to save, and the United States’ retirement policy initiatives have largely focused primarily on consumer financial education and nudging people to save more.
