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View Diary: Daily Kos Demographics Poll: What's your 401(k) balance? (39 comments)

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  •  I'd be curious (12+ / 0-)

    Who thought it would be a good idea to essentially limit the benefits of these tax-favored schemes only to the relatively well-off who have the good luck to (1) be in consistently good health and (2) have a long-term job that generates enough income to allow savings after basic needs are paid covered.

    And on top of that, SS payments (as I understand them) are based on income during your working years as well, so those in the top earning categories have more retirement savings and higher social security benefits (up to a point).

    •  I don't think a lot of "thought" went into it. (4+ / 0-)
      Recommended by:
      Senor Unoball, tikkun, 3goldens, Onomastic

      Mostly, 401k plans seem to have evolved at firms (or industries) that used to have traditional pensions, but don't any more.
      And the traditional pensions had the same drawbacks you mention, i.e. only available to people who stayed healthy in a long-term job with a pretty good income.

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