I would encourage anyone to invest in a 401K because employer matching funds are usually so attractive. But for retirement security nothing beats an annuity. Investments & savings should be managed separately from retirement. And don't think that Social Security isn't a big deal. If you retire at 62 with a SS benefit of $1000/mo, which is well below average, you will draw over $200,000 if you live to the average life expectancy age of 79.