Persuasive Essay About 401k

Many Americans see different things when they receive their paychecks. For some it means they can finally buy that dress that has been staring them down for the past week and a half. For others they see bills, food, and other must need essentials to keep them sheltered and hygienic. Another class of people see savings and investments for their future or retirement. There is a huge number of payroll taxes that are taken out of paychecks every time you are paid without your consent. One thing you have the choice of giving money to is a 401K, for now at least. According to this article 401K should not be a choice. Every person should automatically get a certain amount of money taken and put towards their savings. The consumers do have the option …show more content…
Tests have shown that it showed a huge increase in workers that were automatically included in paying into their 401k. More and more people are starting to include behavioral and social sciences in business, including the Obama Administration (Using well written emails to increase military numbers). Economist say that the United States is facing a “retirement trap.” the statistics are a bit disturbing stating “only 40 percent of American families in the bottom half of the income distribution have any form of retirement savings plan.” This also includes that the average of those families savings is at 40k. So automatic 401K’s is the biggest “nudge” the U.S has introduced. Other behavioral tricks also include workers who saved in their companies got $2 for every $1 they put in. It was concluded that it wasn’t that people weren’t willing to pay or invest, but instead the money simply wasn’t available. The amount of money they were being payed wasn’t enough to support themselves as is. Another case is how much of the money they save today will benefit them 20-30 years down the road. This simply is talking about the inflation rates and how far will your dollar go 20 years down the