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Pensions did a better job of keeping retirees solvent once they left the workplace, and 401(k)s not only don't keep up but also exacerbate the lack of retirement savings for most of the American population.
So says a report from the Economic Policy Institute, which finds that not only do 401(k)s fail to provide "substantial income" in retirement, the groups that suffer the most from the plans' inadequacies are those who are already suffering financially.
In fact, the report calls the shift from pensions to 401(k)s "a disaster for lower-income, black, Hispanic, non-college-educated, and single workers, who together add up to a majority of the American population."
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Marlene Satter
Marlene Y. Satter has worked in and written about the financial industry for decades.
