Writing for Boomer Retirement, I suggested that there could be some incentives added to the 401(k) plan that would make this all-important retirement vehicle much more attractive to those who under-invest or for those who fail to use their 401(k) at all.
As we all know, 401(k)s are not going away. But it is debatable as to whether this sort of defined contribution plan will be able to exist in the same form it has for almost three decades. Although, if you use it correctly, it can mean a much more secure retirement. So why haven't more people used it?
I suggest that it hasn't been around long enough, not enough people have been exposed to these plans to make the long-term effect work and the incentives are simply too small for the average investor to understand. Read the full article here.