I learned years ago that the biggest benefit from 401(k) plans is turning spenders into savers because savings come off the top. Many participants have told me they successfully accumulated substantial savings that would not have happened without the 401(k); therefore, it is important that more employers help their employees become savers.
Retirement savings have helped drive the economy and made employees less dependent on the government. The many different types of employer-sponsored savings plans and personal IRAs have probably resulted in more than $20 trillion of savings. These plans turned mutual fund entities into the financial giants they are today, and they also created a big need for wealth managers.
