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401ks are fairly mobile although many people simply forget about them. The sad truth is that many people would not allocate enough to their retirement and healt
by bko 11y ago
401ks are fairly mobile although many people simply forget about them. The sad truth is that many people would not allocate enough to their retirement and healthcare without guided direction or a minimal effort option.
But I agree with the problem of pensions but I would also add that today's managers don't want to fund them the way they should. Instead, they set aside some money and assume a very rosy growth rate that doesn't always materialize. Even with that inflated expected growth rate, pensions are often still underfunded. An employee should be free to contribute to such a perpetuity if he so chooses.
Underfunded pension liabilities will likely take down several large cities over the coming years.
- toomuchtodo 11y ago> Underfunded pension liabilities will likely take down several large cities over the coming years. No, they won't. As usual, the federal government will step in as the insurer of last resort, just as they do with the pension guarantee corp [1]. It's almost like HN gets off on people's retirement compensation being cut. Don't blame the people who were promised benefits, blame the politicians who did so, and the apathetic voters who allowed it. If your returns forecasts were wrong because of lack of growth, guess what, you get to make up the difference. That's how business works. [1] http://www.pbgc.gov/ http://www.pbgc.gov/
- coldcode 11y agoAs far as I remember pension guarantee corp is underfunded it likely would fold with one large failure.
- toomuchtodo 11y agoIt'll just be back stopped by the general fund, just like Social Security.