Because it’s overcomplicated, the barrier to entry is significant, and we blame its problems on the consumer as “financial literacy”. Just over half of workers actually have one, and most of them are mismanaged by third parties lobbying for more complexity.
Its just this attitude that allows the 401k middlemen to exploit the market and influence our government. People think it benefits them, but it really benefits other people more.
I’m a software engineer and have had multiple startup employers not provide a 401k. It’s actually much more common than you think to not have one at all. Only 56% of employers have a 401k.
It’s even more common to have no matching. Of the 56% that have a 401k only 50% have any matching at all. This leaves less than 25% of employers with matching.
Of my 3 employers who did not have a 401k they all compensated me in mostly equity. Only a single employer had their equity eventually pay out in some form and it’s not eligible to be put in retirement funds outside of the standard IRA which maxes out significantly less than that 401k
If someone could explain how this doesn’t benefit the working class as everyone with a full-time job should have a 401k?
Because it’s overcomplicated, the barrier to entry is significant, and we blame its problems on the consumer as “financial literacy”. Just over half of workers actually have one, and most of them are mismanaged by third parties lobbying for more complexity.
This is still benefiting just over half of workers, not billionaires.
The billionaires own those third parties.
Its just this attitude that allows the 401k middlemen to exploit the market and influence our government. People think it benefits them, but it really benefits other people more.
I’m a software engineer and have had multiple startup employers not provide a 401k. It’s actually much more common than you think to not have one at all. Only 56% of employers have a 401k.
It’s even more common to have no matching. Of the 56% that have a 401k only 50% have any matching at all. This leaves less than 25% of employers with matching.
Of my 3 employers who did not have a 401k they all compensated me in mostly equity. Only a single employer had their equity eventually pay out in some form and it’s not eligible to be put in retirement funds outside of the standard IRA which maxes out significantly less than that 401k
Have to be able to save money to use a 401k