Over the last five decades, the 401(k) has revolutionized American retirement. This new account allowed workers to stash pretax savings and let them invest these nest eggs like any other funds. This innovation shifted both autonomy and the risk of market volatility to workers away from traditional pension plans, which have mostly disappeared. The result far outstrips the expectations for what was seen as a complementary investment vehicle rather than a firm foundation of financial planning. Today, 401(k)s offer a vast reservoir of funding for the market, but may not be enough to see the next generations through old age. Here’s the breakdown.

13 B.C.

Caesar Augustus instituted tax-funded pensions for Roman soldiers, 13 years of salary after 25 years of service. This replaced land grants

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