Thirty-six percent of private-sector workers in the U.S. don’t have access to an employer-sponsored retirement savings plan.
For the ones who do, rolling over a 401(k) into an IRA mutual fund with a fractionally higher fee structure can cost big bucks over time since the differential is exponential.
This article fails to report the fact that may 401(k) funds have higher fees than identical funds at discount brokers (such as a Vanguard S&P 500 index fund).
This has Macro impact since it affects millions of workers. When Americans aren’t able to save enough for retirement, it’s not just the individuals who bear the burden. Taxpayers overall can suffer as state and federal budgets are stretched due to:
|Lost tax revenue that would have come from savings.|
|Increased government spending to support Americans who lack sufficient funds in retirement.|