Five years ago, when Congress and the financial industry decided IRAs and 401(k) plans should be treated the same, Republicans and Democrats joined hand-in-hand with regulators and the industry, as well as Wall Street and Main Street.
This love-in birthed the 2006 Pension Protection Act. Among the concerns lawmakers wished to address was the sense too many workers were "underinvesting" in their retirement plans.
Underinvesting means one of two things. It can mean workers are simply not investing, or it can mean workers are investing too conservatively. The DOL's own fact sheet admitted "one-third of eligible workers do not participate in their employer-sponsored defined contribution plans (such as 401(k) plans)."
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