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A White Paper on the 401(k) Security Act (PDF)

29 pages. Excerpt: When we do the math, it appears that the average American has saved less than one fifth of what he or she needs for a secure retirement. Here's why: to make a 401(k) account provide the same benefit as a defined benefit plan, pension actuaries say that the retiree needs a multiple of 10 to 12 times their annual salary (or average salary) right before retirement -- that is, 'final pay.' Currently, the average American head of household between age 62 and 65 only has about $110,000, if you add the median 401(k) account balance to the median rollover IRA balance -- or less than twice the median salary of $61,600 for that age group.

Why 401(k) Reform Must Be on the Presidential Campaign Agenda

"It may be too late to reverse many Baby Boomer fortunes; some of them will probably have to keep working into their 70s or later. But reversing the retirement shortfall for their younger cohorts could be readily accomplished by adopting the 10-step legislative reform proposal that tackles three key issues: increasing 401k coverage, boosting 401k account balances and mandating prudent investment practices."

Don't Throw 401(k) Baby Out with the Bathwater

"That AARP would even take seriously the notion of replacing stocks with bonds in 401k plans ('401k Plans: Too Risky for Retirement Security?') reflects the woeful state of innumeracy in this country. 401k plans have problems but it's the stingy employer match that's making them ineffective, not the fact that employees invest in stocks. What's more, if employers were forced to use only bonds in defined benefit plans employers would probably terminate the plans-and I wouldn't blame them. Why? Over the long haul stocks outperform bonds by huge margins so employers would have to contribute more to ensure that their employees are on track."

The President's Savings Proposal (Again) Too Little and Almost Too Late

Excerpt: challenge President Bush to define the 'goal weight' that will get Americans 'off the spending couch and into the savings gym.' Socking $5,000 bucks away in a Retirement Savings Account isn't going to cut it, given that most Americans will need to save a half a million dollars or more, either in a 401k plan at work or on their own.

Radioshack Workers Will Lose Their Jobs and Their Retirement

"While most employers make matching contributions in cash, too many large companies still make a stock match. According to a survey by Deloitte & Touche, 13 percent of employers use their shares to make matching contributions. Contrary to the advice of retirement experts, employees at some of the largest U.S. corporations have as much as 70 percent of their retirement savings invested in company stock ... What should you do if you're one of the more than 9 million Americans whose employers match in company stock? Limit it to 10% of your assets ... And you might want to consider looking for a new job at an employer that values compensating their valuable employees over artificially boosting their company's share price."

Retirement Plan Policy Changes Needed? First, Do No Harm to 401(k) Plans

"Americans aren't pension-poor because of the stock market but because of the typical employer match of 3%. Of the eight countries in the advanced world using defined contribution plans the US rate is the second lowest-even Mexico's employers have to contribute 6% of pay."

A 401(k) Reality Check

Excerpt: This year's 401k Day, sponsored by the Profit-Sharing/401k Council, coincides with the passage of the Pension Protection Act. [The Retirement Solutions Foundation takes] this opportunity to do a reality check to see what steps still need to be taken to make sure 401k savers nest eggs aren't half-full when they need them.