The 401(k) ‘Race’ is a Marathon

To succeed in the 401(k) “race,” it takes consistent savings activity over an extended period. It is a marathon, not a sprint.

I was reminded of that when Prudential’s David Blanchett and Jason Fichtner shared their coming race as part of their “Evolution of Retirement” podcast.^[i]

The 401(k) “race” is a marathon—a distance race, decades in length. Unlike a 100-meter sprint, you can’t see the finish line when standing at the start.

And, seldom is the “race” for retirement a straight line.

Can you imagine your retirement? Imagination is the ability to envision in your mind what you cannot at present see with your eyes. To succeed in most races, for many, including the 401(k) “race” for retirement, you must run it twice—first envision it in your mind, then execute.

Your 401(k) is One Part of an All-Time Famous Race!

Is the 401(k), with its tax preferences and employer financial support the Wind at Your Back? Consider these historic races:

• The 100 Meter Dash: The current women’s world record in the 100 meters is 10.49 seconds, set by America’s Florence Griffith-Joyner at the 1988 United States Olympic Trials in Indianapolis, Indiana, on July 16, 1988. That’s 38 years ago! That record still stands – even though it was later determined that her run was wind-aided.
• Philippides’ run of 26.2 miles in 490 B.C.: The marathon was a fabled run of the Greek soldier who carried a message of victory over the Persians from the Marathon battlefield to the city of Athens, Greece. In the first modern Olympics, in 1896, the winner ran it in just under three hours—2:58. Today’s world record is 2:00:35. That’s 4 minutes, 36 seconds a mile for 26 miles and 385 yards!
• They Said It Couldn’t Be Done: On May 6, 1954, Roger Bannister, a medical student, worked his usual shift at St. Mary’s Hospital in London, England. He then took an early afternoon train to Oxford to run the mile-distance race. His time? 3:59.4 – becoming the first human to break the mystical 4-minute barrier. The New York Times trumpeted the feat as accomplishing “one of man’s hitherto unattainable goals.” Yet, only a few weeks later, another participant in that historic race, John Landy, broke Bannister’s world record by running 3:58. Over the past 72 years, over 2,000 athletes have broken four minutes in the mile, but the world record has only been reduced by 16 seconds to 3:43.

Last year, 2025, America reached “Peak 65” where 11,000 Americans reached age 65.

Like the sub-4-minute mile, your retirement is no longer an “unattainable goal.” Saving for retirement is a marathon. With a 401(k), victory can be yours.

My ‘Race’ to Retirement

I started my own retirement race in December 1973. My new employer offered a defined benefit pension plan. I left there in June 1978—before vesting. Then came a series of positions, one for 15 months, the next for 33 months, the next for 4 months, and then one for 36 months. Starts and stops, stops, and starts.

Most American workers have had and will continue to have a similar career journey. It has always been the exception where an individual works his or her entire career for a single employer.

Over the past seven decades, according to the Census Bureau and other studies, the median tenure of all American workers age 25+ has been less than 5 years. Median means middle—an equal number of workers had tenure of less than 5 years as those with tenure of more than 5 years. However, medians may be misleading. Most workers, myself included, had a succession of employers with less than 5 years. So far, I left 14 of my 16 employers before completing 5 years of service. Prior to 1989, my accrued, vested savings were next to nothing. It was “churn baby churn.”

However, times change. These days, if your employer sponsors a 401(k), you are more likely than not to be automatically enrolled, to receive an employer match or safe harbor contribution, and to vest in the employer contribution as soon as participation starts or within the first three years of service. According to the Plan Sponsor Council of America’s 68^th Annual Survey, 44.1% of surveyed plans vest immediately, and 66.9% of plans fully vest company matching contributions within 3 years.

My Race Team

As a plan sponsor, administrator, advisor or recordkeeper, you are part of each participant’s retirement preparation team. You are also part of each worker’s financial fitness team—because the race isn’t limited to retirement preparation. Encouragement comes in many ways—sponsoring a plan, offering financial education, creating nudges to participate, to increase contributions, to invest, even in decumulation.

Yes, as a plan sponsor, you are the “sponsor” of your workers retirement race. Workers may not be fully aware of all you do. Others may take you for granted. But you are a teammate integral to workers’ financial fitness.

In my last plan sponsor role, I would often remind my benefits planning, communication, and administrative teammates of the privilege we had. We had an opportunity, multiple times each year, to influence workers’ lives. It was work, but it was also fun. Looking back, when I meet former coworkers enjoying retirement, their success in becoming fiscally fit and preparing for and enjoying retirement was a major part of the reward I received.

Begin With the End in Mind – Early Money Is Pure Gold³

If you are saving in a 401(k) plan and/or an individual retirement account (IRA), success is much more likely if you can envision the race and if you start early. Consider the following comparison: someone who starts at age 25, saving $10,000 a year for 15 years compared to another who delayed, and didn’t start saving until age 35, saving the same $10,000 a year, but for 30 years. Both calculations assume a 6% earnings rate.

If you start saving earlier, you won’t need to save as much.

Many Start Slowly, Then Accelerate. Keep Moving – No Matter What!

As noted above, it is best if you start early. But some start slowly with a modest level of savings and, as the 401(k) “race” continues, workers often increase their savings rate.

A trick I learned in preparing for my first marathon was to start further back, not to sprint out of the gate, and, as the race progressed, to focus on the runner in front of me, then increase my pace to gradually catch and pass them—to “reel ‘em in.”

Ever see someone run the wrong way? If you ever do, you’ll never forget. In the 401(k) “race,” too many people turn around and run back towards the start. Worse, folks in Congress are cheering them on^[ii]. We call that leakage. It happens when people take hardship withdrawals, or pre-retirement, post-separation distributions. Believe me, a distance race like retirement, a marathon, is tough enough even when people don’t turn around and retrace their steps.

My race “team” also taught me to always keep moving—even after finishing the race. If you can’t maintain your pace, slow to a jog or a walk, but don’t stop. You’ll run into challenges along the way such as unanticipated bills, employers who don’t sponsor a plan, etc. If that happens to you, use the Individual Retirement Account to keep moving and keep saving.

Finally, for most of us, we will be a retirement funds saver for 30 or 35 years or more, and we will be a retirement funds spender for 20, 25, or 30 years or more. But we will always be a retirement fund investor—the race doesn’t end—it continues long after you break the tape at the employment finish line. So, keep moving and keep investing.

Don’t forget to enjoy the race.^[iii]

I always appreciate your comments, concerns, criticisms, or questions. Connect with me on Linked-in or contact me at: jacktowarnicky@gmail.com

Disclaimer No. 1: My comments are my own based on my past experiences in plan sponsor and consulting roles and do not necessarily reflect those of any employer or association I have been employed by or affiliated with, past, present, or future.

Disclaimer No. 2: Information was provided by individuals with knowledge and experience in the industry and not as legal or tax advice. The issues presented here may have tax and legal implications, and you should discuss this matter with tax and legal counsel prior to choosing a course of action. This article is intended to be informational only. It is not and you/others should not use it as a substitute for legal, accounting, actuarial, tax or other professional advice. Any advice contained in this article was not intended or written to be used and cannot be used by anyone for the purpose of avoiding any Internal Revenue Code penalties that may be imposed on such person [or to promote, market or recommend any transaction or subject addressed herein. You (others) should seek advice based on your (their) particular circumstances from an independent tax advisor.

---

^[i] The Evolution of Retirement, From the origins of Social Security as old-age insurance to today’s changing “three-legged stool” of retirement income, Jason Fichtner joins David Blanchett to discuss. Prudential, Accessed 1/12/26 at: https://news.prudential.com/us-en/Life-and-Longevity-Podcast

^[ii] J. Towarnicky, Is Congress Mad? Are You? SECURE 2.0 adds a variety of new leakage opportunities, Jack Towarnicky argues. Congress has made up its mind. Your turn. 401kspecialist.com 2/3/23. Accessed 1/12/26 at: https://401kspecialistmag.com/is-congress-mad-are-you/

^[iii] J. Towarnicky, Maximize Outcomes, Not Incomes. Pre-retirement planning for workers retiring in the second half of the 21st Century. 401kspecialist.com, 3/31/2023, https://401kspecialistmag.com/maximize-outcomes-not-incomes-die-with-zero/