
Creator of the 401(k) says it 'isn't working really well now for many middle- and lower-income employees'
Ted Benna, often credited as the creator of the 401(k), has launched a new savings plan aimed at helping lower-income workers save for retirement through employer-funded rewards.
The plan, called Radish, targets the shortcomings of traditional 401(k) plans, which often benefit higher earners more.
"The 401(k) isn't working really well now for many middle- and lower-income employees," Benna acknowledges.
By incentivizing performance milestones such as tenure with a company or on-time deliveries, Radish hopes to foster savings habits and reduce turnover in industries like trucking and retail.