For two decades, the U.S. retirement plan industry rode the momentum of a huge 401(k) wave. Now, it feels as if the wave has come crashing down.
The frustration that employers and employees feel toward 401(k)s was dramatized by Time magazine's October 9 cover story, Why It's Time to Retire the 401(k). In an uncharacteristic display of emotion, the magazine called 401(k)s "a lousy idea, a financial flop, a rotten repository for our retirement reserves."
In the same month, U.S. Labor Secretary Hilda Solis spoke at a conference in Washington, D.C. and said about 401(k)s: "These were never meant to be more than supplemental plans, and the recession has decimated too many accounts."
Recommended For You
Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.
Your access to unlimited BenefitsPRO content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking benefits news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
