retirement (Photo credit: 401K)

A recent report on the problems with our 401(k) retirement plan provides the latest example how public policy groups want the government to take control of your retirement savings.

A liberal policy advocacy group named Demos recently published a report titled The Retirement Savings Drain which rehashes old complaints about 401(k) plans, overstates the costs of many current plans, and offers a government plan as a solution.

Chief among the complaints by Demos are that current 401(k) plans have excessively high fees, and those fees are hidden from employees. While in many cases employees do pay high costs, 401(k) fee disclosure has been planned to be rolled out in 2012 for some time now, and may help address ignorance of what plans actually costs.

The Demos report lists four reasons for the problem of high fees with 401(k) plans:

1) Complexity

2) Employers lack of knowledge

3) Employees lack of knowledge

4) Inefficient market structure

While all of the above may have some truth, what Demos fails to acknowledge is that all four items are due to the lack of a free market in 401(k) plans, including burdensome rules and penalties on employers who choose to offer plans to help their employees save.

See the article here:
Ignore The Retirement Experts