Retirement Plans Torpedoed Despite Rally

"What is the role of 401(k)'s going to be going forward?" she says. "Everybody should have access to one, not just the people whose employers decide to sponsor them. The important thing is not the form of the plan, so much as how do we make sure that people -- primarily low- and moderate-income people -- arrive at retirement with a decent amount of assets that will carry them through the rest of their lives."

Perun helped craft legislation that would create a universal savings plan for Americans. It would be similar to one that has been in use in England for the past five years.

The proposal is contained in legislation that Sen. Blanche Lincoln (D-Arkansas) plans to file next month. At birth, every American child would be provided with a $500 contribution for a new investment fund structured for an 18-year investment horizon. Up to $2,000 could be contributed annually by the child or on behalf of the child, and low- and moderate-income families would be encouraged to save through matching contributions provided by the government. Account funds would be locked up until the child reaches age 18.

-- Reported by Joe Mont in Boston.

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