The Do-It-Yourself Pension System Has Failed

America is diving head first into a retirement crisis, but perhaps we shouldn't beat ourselves up for the dismal state of things.

The real place to put the blame, says Teresa Ghilarducci, professor of economics at the New School for Social Research, is on commercially-run, do-it-yourself retirement plans that expect far too much from average investors. Like saving regularly and not breaking our piggy banks in a crisis, she writes in the Times:

"First, figure out when you and your spouse will be laid off or be too sick to work. Second, figure out when you will die. Third, understand that you need to save 7 percent of every dollar you earn ... Fourth, earn at least 3 percent above inflation on your investments, every year ...

Fifth, do not withdraw any funds when you lose your job, have a health problem, get divorced, buy a house or send a kid to college. Sixth, time your retirement account withdrawals so the last cent is spent the day you die."

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