Did you know 401(k) plans date back 40 years? That’s right, they were introduced 4 decades ago and have seemingly taken over retirement savings plans nationwide. But even as pensions have fallen by the wayside and though we’ve seen an increase in numbers of people who open 401(k) accounts, the truth is that they’re not as popular as they seem.
A quarter of workers doesn’t have any money set aside in 401(k) accounts. So we can’t help but wonder why?
Perhaps it has something to do with the attractiveness of the program. Ever heard of the Setting Every Community Up for Retirement Enhancement Act of 2019? This new law is designed to add more features that would attract more workers. The SECURE act took effect on the 1st of January 2020, so let’s see what has changed and if it’s worth it for those who haven’t joined the bandwagon yet.