One of the biggest scams ever to be created. Its a savings account for retirement that businesses would match the contributions you make to it. Problem is, it did away with most pentions, companys cut health insurance costs by making people work 38 hrs or less a week so they are not covered by medical or dental ins, and cut wages to remain competitive with other businesses. So now employees don't make enough money to contribute to their 401k, employees don't have to match it if no one makes contributions, and when changing jobs, a lot of people cash out there 401k and have to start over. 401k can also hurt you later in life because they do have cash value, where a pension can't be counted against you because you can't cash them out so they are safer then a 401k. The best retirement thing you can do is buy a affordable car, pay it off ASAP, and keep it as long as you can, then make those car payments you had to a retirement account. In 30yrs I owned 2 cars. Paid off the first one in a year and a half, the second one in 2 1/2 yrs. Made payments to retirement account for 26 yrs, have a pension, and retired at 50. Now work part time at a pot store and enjoying life. Lol I don't like stress.