Incomplete, Not Obsolete: A 401(k) Toolkit To Help Solve America’s Retirement Crisis

As the first generation to rely on 401(k)s nears retirement, large swaths of Americans don’t have enough saved. Was the “do-it-yourself” approach to retirement savings a mistake?

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By Matt Bahl, Riya Patil

Category:

Retirement, Savings, Workplace

Wednesday, July 23, 2025

Incomplete, Not Obsolete: A 401(k) Toolkit To Help Solve America’s Retirement Crisis

Understanding the State of the 401(k)

Every day, a record 11,000 Americans turn 65 and enter retirement.¹ They are the first generation to rely primarily on 401(k)s to build retirement savings, marking a departure from the defined benefit retirement savings plans of the past.² Yet nearly 1 in 4 Americans retiring today have no retirement savings at all, revealing cracks in a system that has shifted financial risk to workers.³

As wage stagnation and rising costs make it harder to save and invest, this brief explores why the 401(k) alone is not enough – and how employers can expand access to wealth-building tools that help all Americans have a financially secure retirement.

What You’ll Learn

Read the full brief to explore actionable solutions for building a more holistic and effective retirement system.

Understand the gaps preventing workers from saving for retirement, including limited access to employer-sponsored plans

Learn how employer-led interventions – like shortened waiting periods, expanded access, and financial guidance – can set workers up for a stronger retirement

Discover alternative wealth-building tools that bolster 401(k) plans and help workers build retirement savings

Solution Design Spotlight: Eliminate Waiting Periods to Expand 401(k) Access

Shortening or eliminating waiting periods for 401(k)s is a proven strategy to increase enrollment and improve long-term financial security.⁴ For part-time, frontline workers, and gig workers in particular, early access can be a critical step toward financial stability. Being able to save sooner allows workers to build savings gradually, enabling them to reap the advantage of compounding interest and secure a stronger retirement future.

Our Supporter

Dayforce commissioned this report to identify key trends relating to the state of retirement security for a workplace audience. The insights and opinions expressed in this report are those of the Financial Health Network and do not necessarily represent the views or opinions of our partners, funders, and supporters.

The Financial Health Network conducts impartial research on the financial services landscape and does not endorse any specific products or services.

Endnotes

Jason J. Fichtner, “The Peak 65® Zone Is Here – Creating a New Framework for America’s Retirement Security,” Retirement Income Institute, January 2024.
Ibid.
Ibid.
Matt Bahl, Riya Patil, & Tanya Ladha, “The State of Retirement Security in America,” Financial Health Network, June 2024.

Written by

Matt Bahl

Vice President, Workplace Market Lead

Financial Health Network
Riya Patil

Senior Associate, Workplace Solutions

Financial Health Network