Pensions....

[disneysteve]

But what would that look like, other than "higher 401(k) contributions"?

For one thing, make them more available. A significant percentage of workers still do not have access to any sort of employer-sponsored retirement plan. I didn't have one until 2017. Otherwise it's just IRAs and taxable savings and the IRA limit is ridiculously low.

401k loans are an awful idea. And the penalties for early withdrawal should be much steeper. It should be crystal clear that these accounts are for retirement. They aren't for a new car or a vacation or your kid's braces or a home theater set up.

Investment options could also be improved. Keep it simple and low cost. Index funds. Target date funds. No actively managed funds with high expenses.

[disneysteve]

But what would that look like, other than "higher 401(k) contributions"?

In the other thread, you mentioned that your company only pays the match if you are employed on 12/31 each year. Do away with nonsense like that. Pay the match every 2 weeks when the contributions are made.

[Nutria]

In the other thread, you mentioned that your company only pays the match if you are employed on 12/31 each year. Do away with nonsense like that. Pay the match every 2 weeks when the contributions are made.

That would "just" mean reverting the law from a few(?) years ago which allowed that to happen. (I hope it happens, but aren't holding my breath.)

[Like2Plan]

How many companies are going to bet bailed out like that, as opposed to having their pension funds being transferred to the PBGC and thus benefits reduced?

Just as importantly, "10 pensioners for ever 1 worker" is manifestly unsustainable.

As I said up-thread, I don't see us going back to the pension model. But, in this specific case--(in the link I provided) they were able to get back on track even though they had 10 pensioners for every worker. This is because pensions are set up a little differently than say social security. The company must fund the pension and not depend on future contributions of new employees to fund.

[Like2Plan]

For one thing, make them more available. A significant percentage of workers still do not have access to any sort of employer-sponsored retirement plan. I didn't have one until 2017. Otherwise it's just IRAs and taxable savings and the IRA limit is ridiculously low.

I totally agree. It would be nice if the IRA limit could be increased. Or, how about 10% (or ??%) of lifetime earnings--so, if you find yourself behind you can catch up-and you don't lose your tax advantaged space.

401k loans are an awful idea. And the penalties for early withdrawal should be much steeper. It should be crystal clear that these accounts are for retirement. They aren't for a new car or a vacation or your kid's braces or a home theater set up.

I thought about starting a thread titled, "There Must Be Fifty Ways......"
(To wreck your 401k)
Because there are many ways to go wrong. Now, maybe if you needed funds for a heart transplant and that was the only way to get it, I could see a loan.
About the only thing worse than taking a loan would be to cash out 401k savings (paying tax, plus penalty) when moving to a new job. But, I don't know if increasing the penalties would change behavior. Sometimes you don't realize what the penalties are until after the deed is done and can't be undone. Missing a RMD has a pretty stiff penalty, but I wonder how many folks are aware of that penalty? --. "For every dollar not withdrawn, the IRS will charge a 50% penalty, known as the excise tax." (although, I understand there may be a remedy for that) https://www.investopedia.com/article.../05/011005.asp

Investment options could also be improved. Keep it simple and low cost. Index funds. Target date funds. No actively managed funds with high expenses.

I totally agree.

[Like2Plan]

Another improvement to 401ks--this would be a relatively easy one:

Have the Summary Plan Description (SDP) for the 401k plan on line so that prospective employees could readily compare one employer's plan with another when considering employment.

The might make employer contributions more generous over time if you could understand how the plan works upfront--you might go with employer "A" (with an 8% match paid each pay cycle) vs employer "B" (with a 3% match paid annually with a 3 year vesting period).