But your concern of their limitations applies to so few people.
Roughly 30% of people have less than $1000 saved for retirement, in any kind of account [1]
Roughly 55% of people have less than $25K saved, in any kind of account
The 401k personal contribution limit is $17,500 this year, and if someone had a 50% match form their company, they could top that in just ONE single year.
Yes, I know that the vast majority of people don't/can't/won't plan for retirement at all. But we're already talking about "parents with modest incomes but a lot of savings from planning their own retirement." Many of these people could fall into this category.
But your concern of their limitations applies to so few people.
Roughly 30% of people have less than $1000 saved for retirement, in any kind of account [1]
Roughly 55% of people have less than $25K saved, in any kind of account
The 401k personal contribution limit is $17,500 this year, and if someone had a 50% match form their company, they could top that in just ONE single year.
[1] page 18, 19: http://www.pacificlife.com/NR/rdonlyres/BCCBDD57-93B9-4B5F-8...