As baby boomers and younger generations prepare for retirement, exchange traded funds (ETFs) might be needed now more than ever. ETFs would bring benefits such as transparency and low expenses to retirement plans that are attractive to many investors. Unfortunately, there are some rough areas that need to be smoothed out before ETFs are successfully integrated into 401(k)s.

It looks as if ETF providers and retirement plan managers need to pick up the pace as people are staying in the workforce longer, thus increasing the amount of money they can save for retirement. According to the Employee Benefit Research Institute (EBRI), the number of people 55 and older who are actively in the labor force increased from 38% in 1993 to 45% in 2006. The number of people ages 65 to 69 in the work force increased from about 18% in 1985 to 29% in 2006, reports Lisa Lacy for Ignites. In addition, the percentage of workers age 55 and older who work full-time all year increased from 54% in 1993 to 64% in 2005.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.