Ep. 3: Grading America's Retirement System
For all its successes, the retirement system is far from perfect. Hear from respected industry leaders and help grade the system on four crucial factors.
PGIM does not establish or operate pension plans.
At 40 years old, the 401(k) has become part of the bedrock of the employer-based retirement system. Tens of millions of Americans have socked away trillions of dollars in a retirement investment vehicle that has fundamentally changed the dynamic of how employers provide a secure retirement for their workers. Today, the 401(k) makes up more than $6.5 of the $9.5 trillion in workplace defined contribution assets. But in 1981, this nascent idea was trying to find its place amongst pension and various savings plans, and it was finding an audience that would propel it to prominence. Host Josh Cohen talks with Ted Benna, father of the 401(k), and Richard Stanger, the author of the 869-word insert to the US tax code that changed retirement.
In this bonus episode, Ted Benna, who is often dubbed the father of the 401(k) and who was a guest from this episode, reminisces about the early days of DC plans. Stories he shares includes a memorable exchange with a future vice presidential nominee about retirement savings, how plans were built and communicated in those days, and blowback he received from some in the industry.
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