The Old Retirement Model Falters Ted Benna's creation of the 401(k) revolutionized American retirement savings in the 1970s. However, his plan has left a legacy that may be more problematic than previously acknowledged.
In an interview on Bloomberg This Weekend, Benna revealed that the 401(k) model has failed many workers struggling to make ends meet. Decades of success stories about the 401(k) have masked its limitations.
The plan's reliance on paycheck deductions and long term savings goals has worked for some but left others in a precarious financial situation.