This is what Australia does, and it has some of the highest retirement saving rates in the world. A 401(k) is only one part of a larger retirement system that includes Social Security. Related:The Father of the 401(k) Has a New Savings PlanFor low-income workers, saving more than 12% may not be possible or optimal. That is how much people in Australia contribute to their accounts, but they don’t have a large Social Security benefit. Social Security is low risk, which means that people who can afford to invest more can put their money in risker assets.