Workers' 401(k) Plans Are a `Crap Shoot,' Need to Be Revised, Miller Says

[marmar]

Miller Says 401(k) Plans Are High-Stakes ‘Crap Shoot’ (Update3)
By Alexis Leondis


Feb. 24 (Bloomberg) -- House Education and Labor Committee Chairman George Miller said 401(k) retirement plans do not provide sufficient retirement security for many Americans and must be revamped.

Miller, a California Democrat, recommended better disclosure of 401(k) fees and more objective marketing of retirement products to investors at a Washington hearing today on the effectiveness of existing retirement savings plans.

Investors had $2.7 trillion in 401(k) accounts as of Sept. 30, according to the Washington-based Investment Company Institute, which represents mutual funds. The Congressional Budget Office estimated that workers lost $2 trillion over a span of 15 months from declining stock markets at an October hearing of the House Education and Labor Committee.

“For too many Americans, 401(k) plans have become little more than a high-stakes crap shoot,” said Miller. “We are realizing that Wall Street’s guarantees of predictable benefits and peace of mind throughout retirement was nothing more than a hollow promise.”

The panel of witnesses is “divided on whether we can have 401(k)s as the only supplement,” to Social Security, said Alicia Munnell, director of the Center for Retirement Research at Boston College. ..........(more)

The complete piece is at: http://www.bloomberg.com/apps/news?pid=20601087&sid=atGxLdii9n2g&refer=home

[SoCalDem]

1. Why not? The current batch is worthless..Time to re-vamp them

so the workers who are 20,30,40 NOW can build up a new supply of money to be stolen again in 35-40 years..just like ours was..:(

[bluestateguy]

2. That's why I don't have one

I keep my money out of the Wall Street casino!

[Common Sense Party]

3. Miller is little more than a moron.

And who says that 401(k)s are the ONLY supplement to Social Security?

The ignorance and fear-mongering on this issue are breathtaking.