Dont't Alter 401(K) Funding: Millionaries are Rare and Most People Save Too Little

Abstract

(Response) The "father" of 401(k)s observes that very, very few 401 (k) plan participants are "millionaires." There's no overfunding problem, he maintains. In fact, the average participant's account balance is only about $35,000. So the problem is not that a few have managed to accumulate large balances, it is that most employees still are not saving enough. Moreover, a $1 million nest egg isn't really a large sum of money when it has to last through a long retirement and negative effects of inflation.