401(k) Creator Ted Benna Launches Radish Plan for Workers Earning Under $160,000

Q: If the creator of the 401(k) admits it failed the working class, what radical new system is he proposing to replace it?

Benna is not proposing a single government-run replacement for the 401(k). He is pushing a much simpler, low-cost, portable savings model aimed at lower-income workers: IRA-style accounts with automatic payroll saving, minimal fees, no minimum balance requirements, and easy default investments. The core idea is to strip out what he sees as the 401(k)’s biggest failures for working-class savers — complexity, high administrative costs, confusing investment choices, and dependence on workers having enough spare income to actively manage contributions. In practice, that means accounts that can follow workers from job to job, use automatic enrollment and payroll deduction, and place money in straightforward diversified funds such as target-date or balanced options. That approach overlaps with broader policy moves now gaining traction, including low-cost IRA platforms for workers without employer plans and the new Federal Saver’s Match of up to $1,000 for eligible low- and middle-income workers under SECURE 2.0. The goal is to make retirement saving work more like a simple default utility than a financial product people must master. So the “radical” part is not a return to old-style pensions or the abolition of personal retirement accounts. It is a redesign around simplicity and access: portable, ultra-low-fee IRA-based saving, boosted by automatic features and public matching incentives, for workers who have benefited least from the traditional 401(k).

3 articles · Updated · Benzinga · Jul 29

Ted Benna, 84, is rolling out Radish, an employer-funded savings plan aimed at lower-paid workers who often cannot afford to contribute to a 401(k).
Radish uses tax-advantaged performance rewards instead of paycheck deferrals, letting employers deposit money for goals such as safety, tenure or on-time work; a trucking pilot covering about 200 workers is set to begin soon.
Benna says the idea targets a gap left by the 401(k): more than two-thirds of private-sector workers can access such plans, but only about half of eligible workers participate.
The pitch is that Radish can build emergency or retirement savings while reducing turnover, especially in trucking, though critics say employers may prefer simple wage increases and note the rewards would not count toward Social Security earnings.
The effort comes from the architect of a system that now covers about 70 million workers and holds $10 trillion, yet has drawn criticism for favoring higher earners and replacing pensions for many lower-income employees.

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Benzinga7d ago

401(k) Inventor Ted Benna Proposes New Employer-Funded Radish Retirement Plan for Lower-Income Workers

Bloomberg8d ago

Ted Benna, 401(k) Creator, Introduces New Savings Plan for Lower-Paid Workers

Wealth Management8d ago

401(k) Creator Ted Benna Launches Radish Savings Plan for Lower-Income Workers

If the creator of the 401(k) admits it failed the working class, what radical new system is he proposing to replace it?

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