Rethinking retirement savings

This is an archived article and the information in the article may be outdated. Please look at the time stamp on the story to see when it was last updated.

President Barack Obama released his 2014 budget plan Wednesday afternoon.

The 3.8 trillion dollar plan is an effort to reduce the deficit by $1.8 trillion in the next 10 years.

The plan is also meant to raise money for infrastructure and education programs with higher taxes on the wealthy,as well as a cigarette tax increase from 1.01% to 1.95%.

The greatest disagreement from both Democrats and Republicans has to do with changes in the way Americans save for retirement.

In the plan, saving for IRA's would cap at $3 million and could cut more than $400 billion in Medicare and Social Security.

Cuts for such programming would be done in a variety of ways from negotiating prescription prices, to charging wealthy seniors more money.