This is a perfectly acceptable rebuttal in my opinion.
Things i agree with in this article:
1) without the 401k system, many people wouldn't save at all - true. It's unbelievable that without automatic enrollment most people wouldn't bother setting it up.
2) Fees aren't the only thing. The average person is so investment clueless and completely unwilling to listen to anything financial that without things being automatically set up they would fail even worse than they already do.
3) the 401k/403b system won't even allow most corps to have an open brokerage platform for the educated investor because they have to guard people against themselves... by ERISA laws. it's crazy.
there are a lot of people better off paying some exorbitant fees then trying to navigate things on their own.
The financial industry has tried so many things to keep people on track.. target funds, risk level funds, etc.
But it's mind-blowing how uninterested/dumb people are.
Just amongst employees in the American Dental Association's plan.. nearly 50% of people either put nearly 100% of their money into the default "moderate" investment due to not wanting to make any type of choice (paralyzed by fear or inability to make a decision) or 100% cash in a money market fund earning 1% due to an irrational thought that the stock market is just a casino and inability to make any decision.
Even in my own office I've got intelligent 40-50 y.o. women in 100% cash. They know i watch the market, but I refuse to give advice due to the ramifications. I've printed them off basic strategy guides, but that inspires no action whatsoever.
It is beyond unreal to me how people will spend hours and hours in their job, hours and hours clipping $0.50 coupons or shopping for shoes to save $5, or waiting in a 2 hour line for a FREE ice cream on Free ice cream day at the shop next to my office, but won't read one book on personal finance and execute the advice.. because that's too hard/boring.