Research shows 401(k) plans may be ineffective savings tool (reported by Steven Greenhouse via nytimes.com)

While the 401(k) plan has become a prominent feature for many employees, some argue that they remain inadequate as savings vehicles. A report published by The Center for Retirement Research at BostonCollege (found here) highlights a number of these concerns, concluding that the 401(k) may not be a sufficient means to save for retirement, especially in the wake of the 2008 financial crisis. More recently, a number of news articles have emerged with ideas for reforming the 401(k) system. While it is not entirely clear how such reforms would ultimately shake out, the thrust of current coverage seems to be that there is a growing gap between what can be provided by 401(k) plans and what is required. As work is done to resolve this issue it falls to savers to self-educate and remain disciplined in using retirement savings techniques. The link to the original story can be found here.

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