Reply to Should 401ks be phased out?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]44 percent of employees have no access to a 401k.

And IRAs have lower contribution limits and no
match. [/quote]

100% of the 44% of employees that have no access to a 401k still have access to an alternative job and employer that does offer a 401k. We’re not talking indentured servants here. Everyone has a choice.

Furthermore, for those that do have immediate access to a 401k, maximum employee contributions tend to be fixed, regardless of income. Thus, the plans inherently favor the poor, LMC, and MC. These are the lucky ones able to save the recommended 20% towards retirement in a tax-sheltered account. The much less fortunate individual with an income of $325K, for instance, can barely save 7% pre-tax. If anything needs to be fixed, it is this. Everyone – regardless of income – should be permitted to save up to 20% pre-tax in a 401k or similar plan. [/quote]

Congrats on making the dumbest comment on this thread!

Where are these ~44% of jobs  open, waiting for employees to take them? [/quote]

Not to mention how many poor people can afford to set aside 20% of their income. Even if an employer kicks in a safe harbor piddling $1-2k.

My previous employer put in 7% of my total income/bonus earned into my 401k every year, year after year for over 15 yrs. I didn’t need scrimp and save to max out because I was getting at my lowest a cool $25k+ deposited into my account every year.

The more I made the more free money they gave me. Santa Clause for the working stiffs.

I’m almost certain not one single working poor person is getting $25k of free money deposited into their 401ks every year.

[/quote]

I’ve always been interested in what Australia does with their Super Annuitization.

Payroll taxes are used for a mandatory investment account. I’m not sure the specifics, but basically you and the employer have to invest in an investment vehicle to be used at retirement. So everyone has a 401k-type vehicle at every job they have, with a company contribution. [/quote]

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