Isn’t this normal and expected? Pensions are also subject to the same thing since they’re invested in the same stock market, right? It is why most pensions don’t have enough money. You simply can’t make something totally risk free. I think pensions are misleading by offering this guarantee and it always results in the company having difficulties for unrealistic obligations or people not getting their pension that they expected when the company collapses.
> as well as your own investment choices and skills over time
401k plans usually have a default investment suggestion that provides a reasonable place to start. People can choose to stick with those recommendations or not. But the 401k is required by some regulation to make responsible choices as a default strategy. Not all companies have the same flexibility in what you can invest in, but mine have always had low cost funds available. I do agree they should have the ability to freely invest in anything though.