3 ms·
For me the question is why don't all workers have pensions? As I understand it most 401(k) plans have high expense ratios, rely on people actively participatin
by yequalsx 10y ago
For me the question is why don't all workers have pensions? As I understand it most 401(k) plans have high expense ratios, rely on people actively participating and generally leave workers with an underfunded retirement. I prefer a system much like the French. Leaving it up to an individual to plan 40 years into the future does not seem like a sensible social policy.
- jonathankoren 10y agoPensions used to be common until the 1980s. I found this report from the St Louis Fed talking about the transition. https://www.stlouisfed.org/publications/central-banker/summer-2002/a-pension-for-change https://www.stlouisfed.org/publications/central-banker/summe...
- sjg007 10y agoWall Street wanted in on the action which is why we got the 401k.
- brooklyndavs 10y agoAgree, especially with all of the choices that employees have and the risks & fees associated with those choices. Mostly, it seems to be another way to funnel middle class money into the financial industry. The history of the 401k is interesting and was never intended to replace a work's pension. "It was intended to allow taxpayers a break on taxes on deferred income. In 1980, a benefits consultant named Ted Benna took note of the previously obscure provision and figured out that it could be used to create a simple, tax-advantaged way to save for retirement. The client for whom he was working at the time chose not to create a 401(k) plan." https://en.wikipedia.org/wiki/401(k) https://en.wikipedia.org/wiki/401(k)