38 • RU BY, WILD ING & SWANSBURG awnoyrmkeodret.o make money until they simply couldn’t work Once Americans started planning for a true ryeotui rnegm eennto—u gt hh a t ains d, o nhceea ltthheyy setno opupgehd wt oo r kki enegpw hl iivl ei nsgt—i l l retirement income came into play. At first, it wasn’t an urgent issue for many Americans. That’s because of something called pensions. Romans are credited with conceiving the idea of ps eernvsiicoen isn wt hhee nf i rtshtecye nptaui dr y rAe t. Di r.i nSge vseorladl i ec resn tfuorri etsh el ai rt e pr ,aisnt 1p 8e n7 s5i,o nA pml ae nr i ci na nt h eE xUp. rSe. sFsr o imn t trho edruec, etdh e tchoen cfei pr st t b epgrai vna tt oe grow. A pension is essentially an employer-provided iwnhc oemr ee yyoouu wc aonr k’ te do u twl iivl le . kOe enpc e syeonud i nr egt iyr eo,u t hae pcaoymc hpeacnky, every month, until you die. By the 1970s in America, nearly 45 percent of pmrai vnayt es saevcetrosr, wt hoi rnkkei nr sg hlaodn ga - tpeernms i oonn. Ai nn dc otmh aet mw ae sann’tt, faonr iTshs ue ier. f Ionr mf aecrt ,e mi t pwl oaysenr’ td isdo mi t ef ot hr itnhge mt h. ²e²y h a d t o d o a t a l l . That all changed in 1978 when Congress passed TthheeInRteevrennaul eReAvcetnoufe1C9o7d8e,. which added section 401(k) to Does that section sound familiar? It should. The year 1978 was the birth of the 401(k). Under these new plans, it was up to the employee ncoomt pthaenyemployer—to think long-term about income. A ²² Liz Davidson. Workforce. June, 9, 2022 . “The History of Retirement bBeenneeffiittss.” https://www.workforce.com/news/the-history-of-retirement-
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