There's a lot of talk about the adequacy of the current 401(k) system. Naysayers complain it's notbroadly accessible, and in a sense, that's true. According to thelatest data from the Bureau of Labor Statistics' NationalCompensation Survey, 40 percent of all workers don't have access toa defined contribution benefit. (The BLS istalking only about company-sponsored benefits, not IRAs.)
In lamenting the lack of 401(k) availability, some suggest we'dall be better off with defined benefit plans. Unfortunately, theBLS indicates 72 percent of all workers do not have access todefined benefit plans. Pensions don't appear to be as realistic analternative as some may think.
The BLS statistics include both government and private workers.This may skew the results more favorably to pensions (which mostgovernment workers have) and less favorably to 401(k) plans (whichmost government workers do not have). The best example is thebreakdown on “public administration” workers (not includingeducation and health services) offered by the BLS. While 87 percentof those workers have access to a defined benefit plan, only 36percent have access to a defined contribution plan.
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