, Columnist
The 401(k) Problem We Refuse to Solve
The biggest flaw in the retirement plan is that no one saves enough.
Retiring to the beach? Save it.
Photographer: Brendon Thorne/BloombergThis article is for subscribers only.
Was the 401(k) a tragic mistake?
When you use one of those online calculators to estimate your expected income in retirement, it can sure seem so. Investment returns have proven variable, and individuals are often prone to making idiotic mistakes (like selling everything when the market crashes, which is literally the worst possible time to do so). And that’s only for people who have a 401(k); many people decline to participate in a plan, even when their employer offers matching grants. And according to the Wall Street Journal, the early boosters are turning sour on the whole idea.