Since their inception in the late 1970s, 401K plans have over-taken the traditional pension plan to become the cornerstone of most Americans’ retirement savings plans. In that time period, they have helped Americans save more than $4.7 trillion for retirement.[i]
However, in reality, many Americans can’t rely solely on their workplace 401K to generate decades of retirement income. The annual contribution limits on any single retirement savings vehicle are simply just too low to accommodate the anticipated retirement needs of high-income earners.