What are the pitfalls of 401(k) plans for employees?
• The move from lifetime pensions to 401(k) plans means employees now bear much more of the cost — and risk — of saving for retirement. • Instead of the certainty of a pension check every month for the rest of one’s life, employees with 401(k)s are on their own. They must educate themselves about how much they should be regularly saving for retirement. Then they must learn how to invest the money wisely (see below) so that at the end of their working years they’ll have enough for a comfortable retirement, which may last into their eighties and beyond.
