The New American Retirement Plan

The New American Retirement Plan

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Moving Forward
The 401(k) system has reached its limit.

There has been significant progress. Automatic-enrollment programs, default investments, and auto-escalation features have improved the early versions of plans. The current arrangement succeeds at moving employees at midsize to large companies into acceptably funded retirement plans. However, small businesses often do not offer 401(k) plans, and companies of all sizes struggle with account leakage–assets that employees withdraw before they retire.

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