Automatic 401(K) Plans Needed?; Some Recent Studies Show That Less Than Half of Eligible Workers in Their 20s Participate

Summary

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Tracy Yen's opinion of 401(k) plans soured when she was laid off from her first job and learned she hadn't been with the company long enough to keep the matching funds her employer had contributed to the plan.

"All that time I was thinking I had this much money, when all that time I didn't," she recalled. "I didn't understand what vesting was until that point."

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Automatic 401(K) Plans Needed?; Some Recent Studies Show That Less Than Half of Eligible Workers in Their 20s Participate

The experience led the 28-year-old Oakland, Calif., woman to decide not to participate in the 401(k) plan at her next job. That put her in the middle of a large group of young worker...

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