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401k
Just curious why you think it's a scam? It's a type of account that has tax benefits.
401k plans are a scam not because of what they are, but what they replaced.
Companies used to offer pensions. These were retirement benefits that were handled by the company, and the company bore the risk of underperforming markets.
For a number of reasons, pensions were much better for workers. Now, only some unionized workers get them.
There's so much inflation these days that pensions are impossible unless the pension money is invested to keep up with inflation. So it's the same thing at best out a worse option.
So it's the same thing at best out a worse option.
It's not though. With a pension someone work that knowledge manages that investment. With a 401k, the employee is. Except most employees don't have that kind of time or expertise. So, it's "our fault" that we end up with a poorly managed retirement when... we could just do pensions.
Every 401k account I've ever had comes with a "let us manage it for you" option.
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Like people don't lose their saving in the market anyway? But when your 401k goes in the tank, your broker doesn't have the legal obligation to fund your retirement.
If that happens to your 401k, that's your fault. As you get older you are supposed to shift things to be more conservative... You can even put your money in things that are guaranteed to not go down. There are target date funds that do this for you without you having to think about it (although I think target date funds are a little too conservative from the start).
In my country, 401(k) is rare. My wife's company is one of the few that offers it, and it's way better than the government pension my dad is getting as a retiree, which is like less than $200 a month.