This is a significant development, because along with the greater flexibility of a 401(k) plan comes greater responsibility on the part of individuals to direct their own retirement saving. Workers must decide whether to participate in the plan, how much to contribute every pay period, where to invest contributions, when to rebalance their asset mix, and what to do with balances when changing jobs.
Economic theory provides the basis for making these types of choices, but the problems are complex and the average employee may not have developed the skills to formally evaluate the alternatives.