TikTok claims 401(k)s are a scam — financial experts strongly disagree

Viral posts on TikTok and other social media platforms are claiming 401(k) retirement plans are “scams.” Financial professionals say those claims are misleading. Experts note that 401(k) plans offer tax advantages, employer matching contributions and long-term compound growth. While fees and early withdrawal penalties can apply, advisors say the accounts are legitimate retirement savings tools when used properly. Financial planners warn against taking unverified social media advice at face value and encourage workers to understand their plan’s fees, investment options and employer match policies. They also recommend seeking guidance from certified financial professionals rather than influencers. This story includes information from Charles Schwab and financial planning experts discussing retirement trends and online advice.