Numbers Don't Lie

Reading an article about the failure of the 401k experiment.  The "number" they say you need for retirement is 20x your annual income to have the same standard of living.  Think about that number for a moment.  Most people work for 30 years and that may be generous.  People take time off to have kids, attend grad school, to start a business, switch careers, or they work in lower wage jobs to gain experience, get forced into early retirement, any number of things.  So I think 30 years is a generous estimate.  How does one save 20x your annual income by working for 30 years?  By saving 2/3 of every paycheck.  This is so beyond impossible for most people - even most well to do people - it is almost laughable.  So what are people relying upon?  Inheritance?  The lottery?  Their house?

Whoever came up with the 401k idea has a lot of explaining to do.  It put all the downside risk on the shoulders of individuals as opposed to corporations and institutions and enriched many a scheming financial advisor.  It stinks of the Bill Clinton-adopts-Reagan-era Republican ideas, 3rd way nonsense.