P-I Online Editorial: The shrinking 401(k)

More 401(k) scare...

For many workers the future of pensions was the 401(k) plan. Defined benefit plans were deemed too expensive, so we were supposed to save our own money for our own retirement. The company's contribution ranged from a small to an occasionally generous match.

In terms of public policy, the biggest problem facing 401(k)s -- and similar programs for nonprofits -- was getting people to sign up. This was a great deal for most people because it included a tax deferment on those invested dollars. Add the company match, free money, and what wasn't there to like? Still fewer than 40 percent of workers participate.

But even that number could decline soon. The noble 401(k) experiment may be disappearing before our eyes.

This past year, workers who invested their 401(k)s in the stock market have seen significant declines in their savings plans.