The most popular American retirement savings plan, section 401(k), is celebrating its 40th birthday on November 6th. When it was enacted, lawmakers did not foresee it becoming a widely used retirement option. Boy were they wrong. It's estimated that over 90 million Americans participate in 401(k)s or similarly defined contribution plans. While it may possibly be the most recognized section of the Internal Revenue Service, there is much debate about whether it's the best retirement savings plan for most people. A recent TIME article insists the 40th anniversary is no time for celebration, but maybe a time for reflection and for lawmakers to get back to the drawing board.

The writers of the article, William Birdthistle and Daniel Hemel, think the 401(k) is facing a mid-life crisis. They say, "the provision has proven to be enormously expensive while also ineffective at helping most American workers save for retirement." Three reasons are highlighted as to why they think the 401(k) isn't the best broad-based foundation for retirement: the sheer cost, its distributional effect, and its inefficiency.

Their suggestion? Instead of the "alphabet soup" of retirement plan options that Americans currently have on the table, Congress could streamline all of these programs into a single retirement option "that all workers could access, with tax benefits targeted at lower-income households and with Social Security still providing a safety net for all retirees in their twilight years."

The Thrift Savings Plan (TSP), a contribution plan already available to federal employees, is mentioned as an option that should be made available to all workers. Whatever route Congress may decide to go, the writers acknowledge it will cost money and will require careful vetting. They urge us to use this anniversary as a catalyst for action.