05/17/2005 - In theory, 401(k) plans and other tax-preferred savings programs can provide a good retirement fund -- if the worker joins up, contributes a substantial chunk of his or her pay, makes the right investment choices and doesn't drop out or tap the account for non-retirement expenses.
NITF That's the theory. The reality so far isn't pretty. Today, the median account balance - median means the midpoint, that half are larger and half are smaller -- of 401(k) and individual retirement accounts combined, for households headed by someone 55 to 59 years old, "on the verge of retirement," is about $10,000, the Brookings Institution's Peter Orszag noted last week.
View full story in The Washington Post -- Match-Making For Savers.
Pew is no longer active in this line of work, but for more information visit the Retirement Security Project on PewHealth.org.