401(k)s Might Be the Only Retirement Option for Many Americans — But They're Also a Major Risk, Experts WarnMore people are saving for retirement than ever before — but an underlying issue's also getting bigger.
ByAmanda Breen•
Withpension plansall but in the past and the Social Security trust fund staring down a 75-year deficit, 401(k) plans are the only sure bet for younger Americans who hope toretireone day.
Today, more Americans aresaving for retirementthan ever before, and they're using 401(k)s to do so — which means that all of that wealth has accumulated among Wall Street's four largest asset managers: BlackRock, Vanguard Group, Fidelity Investments and State Street Global Advisors,CNN Businessreported.
BlackRock boasts $9 trillion under management, Vanguard $7.2 trillion, Fidelity $4.2 trillion and State Street $3.5 trillion: Together, the four companies are in charge of assets worth 65% of the total value of the shares in theS&P 500, per the outlet.
Although the average 401(k) plan tumbled more than 20% in 2022, Americans continue to contribute at a steady rate — with a recent study finding that workers expect to need $1.25 million for a comfortable retirement,CBS Newsreported.
Of course,shareholdershave the right to vote on happenings in company operations, but proxy voting means huge asset managers can do so on behalf of their clients, effectively impacting a company's actions and direction themselves.
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Some say that such concentrated ownership could wreak havoc.
Asset managers possess "significant influence over company practices" and vote on resolutions that could change the course of our planet, shareholder advocacy group ShareAction wrote in a最近的报告, and Harvard Law professor Einer Elhauge called the imbalance the "greatest anticompetitive threat of our time," per CNN.
