Ted Benna built the 401(k) 40 years ago — now he says it fails lower-income workers and is pushing a simpler alternative

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For high-income earners, the 401(k) has proved to be a successful wealth-builder — there's even a record number of 401(k) millionaires (1).

But the man known as the father of the 401(k) is having some regrets. Ted Benna, now 84, helped create the ubiquitous workplace retirement plan about 40 years ago.

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Now he says 401(k) plans have become too costly and complex. And they don't benefit the lower-income workers — truckers, retail staff, hourly workers — who need them most.

"The 401(k) isn't working really well now for many middle- and lower-income employees," Benna told Bloomberg (2). Many of these employees "can't afford to have money taken out of their paycheck even if they have the opportunity to do so."