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Are 401(k)’s a retirement dinosaur?
The tax-advantaged employer savings plan known as 401(k) has been a mainstay of many a retirement plan over the last 40 years. In this somewhat controversial article appearing at VOX.com, columnist Jacob S. Hacker argues that the 401(k) is little more than an “unfortunate interregnum, a massive waste of taxpayer dollars to bolster the retirement security of the rich while undermining the retirement security of the rest.” While that is clearly a very arguable position considering the many millions of Americans whose 401(k) forms the foundation of their retirement income, the author nonetheless predicts that 50 years from now the 401(k) will be extinct. His equally arguable and controversial suggestion that expanding Social Security to replace the 401(k) is an option which ignores the fundamental premise that Social Security was never intended to be the sole source of retirement income. Click here to read the VOX.com article by Jacob Hacker.