In the past two decades, 401(k) plans have become the dominant retirement plan offered by employers. In fact, 64 percent of plan sponsors responding to a recent Hewitt survey said a 401(k) accounts for their organization's primary retirement-savings program. That's up from about 35 percent just 10 years ago.
Just last month, Alcoa said it will eliminate its defined-benefit pension plan in favor of a 401(k). Still, 30 percent of eligible employees don't participate in their organization's 401(k) plan.