Released: October 20, 2008

Middle-class Americans’ retirement at risk

Source: John Gallagher, Detroit Free Press

Through most of his working life, steelworker Ray West looked toward a secure retirement. His company pension would bring in around $30,000 a year, his union contract guaranteed retiree health coverage and he had 401(k) savings of about $50,000.

Three years ago, it unraveled. His company filed for bankruptcy. The collapse reduced his expected pension to around $5,000 a year and canceled his retiree health insurance. And, in three years of unemployment since then, West blew through all the money in his 401(k) as he trained for a new career.

“I lost my job after 27 years before I got my retirement,” said West, 52, of Hazel Park, Mich. “I ain’t going to get nothing.”

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