Rebuttal: 401(k)s more sound than Social Security

It was most fitting that immediately below the jump of Brian O’Connor’s essay on the “horrors” of 401(k) plans (“Workers discover 401(k)s are failing them in retirement,” Sept. 28) was an Associated Press piece, “Job losses push Social Security toward deficits for 2010, ’11.” Readers should find that article much more chilling than O’Connor’s essay. After all, if you can’t count on the government being there for you after a self-indulgent life, on whom can you count?

That said, I was disappointed that O’Connor failed to report some facts to counter the misinformed charges against 401(k) plans.

First, Nancy Hwa of Retirement USA should know perfectly well the rules governing 401(k)s are designed to make sure they don’t get used as a legal tax shelter for high-paid executives. As a low-level manager for a local auto company, there were years my contributions were restricted because the overall participation rate in the company’s plan fell below some legal floor.

Second, it is not the fault of the plans that the rules allow people to withdraw money before reaching retirement age. And it is not a defect in the 401(k) concept that causes people to not to save more money.

Finally, using 2008 as an excuse to trash personal saving and investing as a viable strategy to get to a comfortable retirement is the most deceitful attack of all. How many people are going to need their full retirement savings the day after they retire? Those savings are going to be needed for up to 30 to 40 years of retirement, plenty of time to recoup losses from a single bad year.

Hwa and her ilk may find a large audience among a nation of people who no longer understand the concept of personal responsibility. So good luck with the government’s solutions for all these so-called victims of capitalism.

Jack Lochrie , Farmington Hills