February 06, 2013
The 401(k) Time Bomb

I’m all right, Jack, but you aren’t — not if you’re a baby boomer. Duncan Black explains why, in USA Today.

Over the past few decades, employees fortunate enough to have employer-based retirement benefits have been shifted from defined benefit plans to defined contribution plans. We are now seeing the results of that grand experiment, and they are frightening. Recent and near-retirees, the first major cohort of the 401(k) era, do not have nearly enough in retirement savings to even come close to maintaining their current lifestyles…

The 401(k) experiment has been a disaster, a disaster which threatens to doom millions to economic misery during the later years of their lives. Proposals to improve our system of private retirement savings — even good ones — will offer little to no help for the baby boomers who are currently nearing retirement, and are also unlikely to be of sufficient help for current younger workers. We need to increase Social Security benefits, now and in the future. It's the only realistic way to provide people with guaranteed economic security and comfort post-retirement.

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Posted by Jerome Doolittle at February 06, 2013 02:36 PM
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Who could have known that 401(k)s wouldn't provide a decent retirement?

Posted by: JoyfulA on February 7, 2013 10:06 PM
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