[thewopr]

This is super interesting and something I've never thought about.

One other issue I have noticed with 401k's. Do 401k's exacerbate inter-generational income inequality? I know a number of people who are going to, in the next few decades, inherit very sizable 401k accounts. This is great, in that their parents were very frugal, saved well, and had comfortable retirements. But on the flip side, a pension would have died with that person, now there is this ongoing inter-generational transfer of wealth that otherwise wouldn't have occurred.

[Jach]

Considering something like 70% of rich families already spend away their inherited wealth by the second generation (and I think ~90% by third generation) this seems like a small issue to be concerned about...

[thewopr]

Hmmm, interesting. Any citation for that number? I've heard numbers like that thrown around, but I don't know where they come from.

[astura]

Apparently the numbers are from a wealth consultancy, so not exactly free of bias.

http://amp.timeinc.net/time/money/3925308/rich-families-lose...

>Indeed, 70% of wealthy families lose their wealth by the second generation, and a stunning 90% by the third, according to the Williams Group wealth consultancy.

I love this "factoid" though:

>“It takes the average recipient of an inheritance 19 days until they buy a new car.”

Anecdotally, I personally have two friends who got inhertences, both immediately spent it on cosmetic surgery.

[Zyst]

That's the up side.

On the flipside, if the person who has a 401k finishes it, and has no more money they will then have to depend on their descendants for their livelihood.

Which can make the living standards of the descendant lower, because now they are taking care of their parent for the rest of their life. Which only gets more expensive the further they go (IE: Illnesses)

[pc86]

Inter-generational transfer of wealth is 100% a feature and not a bug. My money was earned through my work. I should be able to dictate to whom it goes when I die. It shouldn't be spread out to help pay for thousands of people I've never met.