Why 401(K)s Are Okay As Part of a Retirement Plan

A 401(k) is a type of retirement savings account that began in the late 1980s as an alternative to traditional corporate-sponsored pensions. To date, millions and millions of employees, around 60% of the workforce, have taken advantage of this opportunity to sock money away for that far away day when retirement might actually become a reality. Critics will say that 401(k)s fall short of their intent because the burden of savings is placed on the worker. Workers are notorious for under-contributing to these plans, ultimately not providing enough deposits to maintain the new retiree’s past standard of living. But, if you read on, you’ll see that a 401(k) plan has many great benefits and remains an important part in your overall retirement strategy.