Basics

Retirement security remains a significant concern for many Americans. Gallup found that 69% of non-retired Americans are very or moderately worried about not having enough money for retirement, and an Allianz survey found that 64% of Americans are more concerned about running out of money than about death. As policymakers look to alleviate these fears, some have pointed to possible changes in how retirement plans operate as a solution. Before the 1980s, most Americans were covered by a pension plan at work. Over time, for a variety of reasons, employers shifted to offering a 401(k) plan instead, and now most U.S. citizens use 401(k)s as their primary tool to save for retirement. One difference is the range of assets that each plan can invest in.