Download
HTML Embed
HTML EMBED
Click to Copy
Marketplace Morning Report

An artist in residence (she can afford)

Jun 24, 2019

Latest Episodes

Download
HTML Embed
HTML EMBED
Click to Copy
Marketplace Morning Report
Download
HTML Embed
HTML EMBED
Click to Copy
Marketplace Morning Report
Download
HTML Embed
HTML EMBED
Click to Copy
Marketplace Tech
Download
HTML Embed
HTML EMBED
Click to Copy
Make Me Smart with Kai and Molly
Download
HTML Embed
HTML EMBED
Click to Copy
Download
HTML Embed
HTML EMBED
Click to Copy
Marketplace Morning Report
Download
HTML Embed
HTML EMBED
Click to Copy
Marketplace Morning Report
Download
HTML Embed
HTML EMBED
Click to Copy
Marketplace Morning Report
Download
HTML Embed
HTML EMBED
Click to Copy
Download
HTML Embed
HTML EMBED
Click to Copy
Marketplace

The 401(k): A failed experiment?

Tess Vigeland May 4, 2012
Share Now on:
HTML EMBED:
COPY
How are you planning to retire?
iStockphoto

Tess nearly wrote a letter this week to the New York Times! Why? She read Joe Nocera’s column about his disappointment with this 401(k). He did take most of the blame for the issues he faced — poor investment decisions, withdrawing money for a divorce. Sure, he made mistakes, but labor economist Teresa Ghilarducci says that the 401(k) is “a failed experiment.”

She says that the 401(k) system does work for some people, the folks in the highest-earning bracket. But for society overall, it isn’t an appropriate way to get people saving for their retirement. Most people are unaware how a 401(k) works, so they’re slammed with fees and poor investing decisions. And all the investments made are short-term and the distribution is a lump sum.

Ghilarducci’s ideal retirement plan would have Social Security income as a base with individual accounts where workers put money aside for every hour they work. And she says that latter should be a mandate, because without it, half the population will not save at all for their retirement. Also, disbursement should happen at the age retirement, so money stays in. But will this plan happen? We’ll have to see.

If you’re a member of your local public radio station, we thank you — because your support helps those stations keep programs like Marketplace on the air.  But for Marketplace to continue to grow, we need additional investment from those who care most about what we do: superfans like you.

Your donation — as little as $5 — helps us create more content that matters to you and your community, and to reach more people where they are – whether that’s radio, podcasts or online.

When you contribute directly to Marketplace, you become a partner in that mission: someone who understands that when we all get smarter, everybody wins.