401(k) Plans: A Failed Experiment
Teresa Ghilarducci (),
Siavash Radpour (),
Bridget Fisher and
Anthony Webb ()
No 2016-02, SCEPA policy note series. from Schwartz Center for Economic Policy Analysis (SCEPA), The New School
The first birth cohort exposed to the 401(k) system for most of their working lives is now approaching retirement. 401(k) participants in this cohort have accumulated only about a third of the savings they need to maintain their standard of living in retirement. The 401(k) system fails even those who use it as instructed. High earners are as ill-prepared for retirement as low-and moderate earners. Inadequate wealth accumulations reflect well-known design flaws in the 401(k) system â€“ patchy coverage, high fees, opportunities to take pre-retirement withdrawals, and the lack of a default pathway for converting accumulated wealth into retirement income.
Keywords: Retirement; 401(k); GRA; Social Security (search for similar items in EconPapers)
JEL-codes: D63 E21 H55 J26 J32 (search for similar items in EconPapers)
Pages: 6 pages
New Economics Papers: this item is included in nep-age and nep-mac
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Persistent link: https://EconPapers.repec.org/RePEc:epa:cepapn:2016-02
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