An entire generation after the 401(k) was born, more than five million employers in the United States still don’t offer this to their employees. The other prob

An entire generation after the 401(k) was born, more than five million employers in the United States still don’t offer this to their employees. The other problem is that when companies do offer 401k plans to employees, a sizable number (20-25%) don't take advantage of them, even when employer matching contributions are offered. At my spouse's former workplace, many people had no concept of how the accounts worked, what they should invest in, or the tax penalties associated with withdrawing early. In a way, it's hard to blame them. Lots of acronyms and unfamiliar terms, confusing investment choices, and tax rules that were designed by bureaucrats, lawyers, and lobbyists. By comparison, Social Security is relatively easy to figure out - part of your paycheck goes into a big pot, and when you reach a certain age you get a small pension for life.