Happy 30th, 401(k)
The 401(k) plan turns 30 years old this year, and while the plan’s arguable creator says he never intended these plans to replace pensions, that’s what’s happened.
Ted Benna says that while these plans have their flaws, they could still work as a pension replacement IF: workers started early and set aside 10 percent of pay; investors get historical returns from stocks and bonds; they don’t take the money out before retirement; and workers use some or all of the money at retirement to buy an annuity that guarantees an income stream for life.
This
WORK SMARTER - LEARN, GROW AND BE INSPIRED.
Subscribe today!
To Read the Full Story Become an Adweek+ Subscriber
Already a member? Sign in