Here's proof that 401(k) plans are not working for most Americans

[Yo_Mama_Been_Loggin]

Can you guess who they ARE working for?

Those golden years aren’t looking so golden for most Americans.

Clearly, the country’s in the midst of a savings crisis as families struggle to cover rising home costs, hefty student-loan debt and everything in between. And it seems it’s only getting worse, unless you’re at the top of the wealth pyramid.

The Economic Policy Institute nonprofit, nonpartisan think tank this week published a series of telling charts that “paint a picture of increasingly inadequate retirement savings for successive generations of Americans — and large disparities by income, race, ethnicity, education, and marital status.”

One, in particular, illustrates a troubling trend:



With almost half of all working-age families having ZERO in retirement savings, the fact that the median family had only $7,800 in these accounts shouldn’t come as a surprise. At the same time, the 90th percentile family had $320,000 and the top 1% of families (which isn’t shown on the chart) had $1,663,000 or more.

-more-

https://www.msn.com/en-us/money/savingandinvesting/heres-proof-that-401-k-plans-are-not-working-for-most-americans--can-you-guess-who-they-are-working-for/ar-AAK3Tlp?li=BBnbfcN

This is exacerbated by the fact that most companies no longer offer a formal pension.

[Historic NY]

1. Trump and the Republicans want whatever crumbs they can get....

so look out for those meager SS checks they are tasty treats.

[LiberalArkie]

2. It never was supposed to work to benefit the employees. As the ENRON employees how there

401K worked out.

[Wellstone ruled]

3. Folks it is after all,

all about disposable income.. Since the Reagan nightmare,middle income and working poor disposable income has become less and less. Most households are two earner and living off of Credit Card check kitting.

As our Grand Kids say,you got to do what you got to do!

[smirkymonkey]

4. K&R

[UniteFightBack]

5. Shouldn't some blame go to folks who are not saving when they could be. I know I was guilty of

that.

[KY_EnviroGuy]

6. I never felt 401Ks were good for us. They enthrall the public to Wall Street and....

suppress our desires to keep them in check. That is why they keep savings interest rates at virtually zero. It's destroyed America's desire to be thrifty, not wasteful and to save.

The plutocrat class is slowly taking us exactly where they want us: a consumerism-driven rental society indebted to them to our graves.

[llmart]

9. I felt the same way since their inception.

And yes, it has definitely destroyed American's desire to be thrifty or to settle for delayed gratification. You have to be very self-disciplined to not be tempted to touch the account the same way as you have to be self-disciplined to forego buying the latest shiny new thing if you can get it on credit.

[rickford66]

7. A boon to the brokers

The average American would either under or over adjust their investment mix. The pros at the company pension funds were better at it. For the most part, index funds were a safe bet, except in the very beginning some plans had guaranteed interest funds. They were safe. Of course if you don't have access to a pension plan or have to change employment and will lose it, a 401k is the only way to save.

[abqtommy]

8. I had several 401k plans over my years of employment. I never had one that I didn't cash in due

to financial necessity, but I did use the plans make it to the point where I could retire on Social Security
and I'm glad I had the plans as a resource to achieve that.

[DeminPennswoods]

10. How does a person making 8, 10, 12, even 15 dollars an hour

working full time set aside money to put into a 401k even if their employer offers one?

[DFW]

11. I know I have one

But I was told that I can't touch it until my employment is terminated. I figure that is maybe in 10-15 years (I'm only 67), so I really don't concern myself with what is in there now. If I can't touch it in the foreseeable future, it doesn't do me any good to plan what to do with it.

[AncientGeezer]

12. Those stats are 3 yrs old...not relavant today....

Yes I clicked all the included links...