The 401(k) plan has reached a tipping point in retirement investing in the United States, and it shows no signs of slowing down.
The Wall Street Journal reports that around 70% of private-sector employees in the U.S. now have access to a 401(k)-style retirement plan, up from 60% a decade earlier, according to the U.S. Labor Department.
Access has been broadened in recent years with more states requiring companies to offer a retirement savings option. and Congress giving small businesses more generous incentives to launch them.
A federal law that went into effect this year requires many new 401(k) plans to use automatic enrollment, which will likely accelerate growth in worker participation. In 2027, the federal government is scheduled to provide matching contributions to lower-income workers saving in individual retirement accounts and 401(k)s, and by 2029, the number of 401(k) plans is likely to reach 1.1 million, according to analysts.
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