Time to Revamp the 401k?
Writing in the Huffington Post, CBS MoneyWatch Editor in Chief Eric Schurenberg says he thinks it is time to consider major changes for 401k plans.
His criticisms include:
- 401k plans randomly create winners and losers.
- 401k plans leave people poor.
- 401k plans expose people to longevity risk.
Comments on longevity risk include:
The shame of this is, longevity risk can be insured away by averaging out the risk over an entire population. Every annuity does this. Why not the national retirement savings plan?
Source: Huffington Post
