Americans will put $2.8 million into their 401k over a career and end up with $750,000 of actual spending power. If you max out your 401k at $23,500 per year for 30 years at 8% annual returns, you accumulate roughly $2.8 million on paper. But $2.8 million in 2055 buys what $1.1 million buys today after average inflation of 3% per year. Then the IRS takes 25% to 35% on the way out. You're after tax, inflation adjusted number lands at around $750,000. 30 years of locking up capital and zero access during your highest earning decades. A 10% penalty if you touch it before 59.5 years old. A menu of mutual funds your employer picked for you. All for $750,000 at retirement age. The 401k was designed in 1978 as a supplement to pensions and social security. Pensions are mostly gone. Social security will almost certainly pay reduced benefited for anyone under 45. For high earners, putting every available dollar into a vehicle you cannot touch for 30 years while ignoring assets that generate cash flow today is an expensive mistake and decision.