The retirement industry in general and 401(k) plans specifically have been the subject of tough questions and much scrutiny, with many calling 401(k)s “a failed experiment.” Robert Richter, past president of ASPPA, defends 401(k)s in a column published in the Wall Street Journal.
While they're not perfect, 401(k) plans are the most effective way to get people to save, especially for people in the $30,000-$50,000 income bracket. Seventy percent of those workers participate in an employer sponsored plan, while only 5% contribute to an IRA if they’re not in a plan, Richter notes. And for the average middle income household, 401(k) assets represent two thirds of personal savings.
