401Ks are a disaster: Column

[llmart]

75. It bothers me a bit....

that I often hear people say, even on this thread, "I'll just work until I'm 70". or "I'll die at my desk". I know it's sort of meant in fun, but people who say these things are assuming they'll even be able or allowed to work until they're 70. Modesty aside, I have been an employer's dream most of my working life - I work like a fool wherever I am and no matter what job I'm given. It's just my work ethic. But I'm now 63 and you think someone's going to hire me? People my age who got "downsized" out of their jobs during the great Bush recession can't find jobs. I have always been extremely healthy for my age, but now I have really bad feet and I've never been afraid to do any sort of work if I have to to pay the bills, but I honestly can't see myself working a job where I'd have to stand on my feet all day. I would end up crippled.

On another note, I remember when companies were selling the concept of 401K's like they were the best thing since sliced bread and I'd say to my coworkers who were buying into it hook, line and sinker, "My parents always taught me that if it sounds too good to be true, than it probably isn't." Over my working life I could see how insidiously all the benefits that our parents' generation got would disappear and they have.

Also, another point that hasn't been brought up on this thread yet is that companies can tell you when you're hired that they will match fifty cents on the dollar in your 401K (or any other percentage), but when times get tough they can suspend their contribution and I know many large corporations that did during the great recession of 2008.