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> 401(k) is a poor solution that requires individual initiative to deploy successfully That's why 401k's are good. I have control, and if my retirement is unde
by ng12 9y ago
> 401(k) is a poor solution that requires individual initiative to deploy successfully
That's why 401k's are good. I have control, and if my retirement is underfunded it's my own fault. Compare this to pensions (both public and private) which are chronically underfunded:
https://www.bloomberg.com/graphics/2017-state-pension-funding-ratios/ https://www.bloomberg.com/graphics/2017-state-pension-fundin...
https://www.bloomberg.com/graphics/2017-corporate-pensions/ https://www.bloomberg.com/graphics/2017-corporate-pensions/
- tomc1985 9y agoExcept most don't. Many don't even have the opportunity, or realize that they have it. In a world where everyone takes advantages of all the opportunities presented to them I would agree with you, but for most (at least around me) 401(k) seems like afterthought or fantasy If I don't have steady work the last thing on my mind is retirement...
- ng12 9y agoAnd in that situation how does a pension help you? If you don't have a stable, well-paying job you don't have a stable, well-funded pension. We need as better system for retirement but pensions are not the answer.
- tomc1985 9y agoI can count the number of 401k holders in my social group with one or two hands. Many more than that set are employed, mostly semi-regularly, and their jobs offer them nothing retirement-wise Pensions may not be the answer, but neither are retirement accounts.
- ng12 9y agoIf your job doesn't offer a simple 401k plan there's no hope for them offering a pension, let alone a stable well-funded one. I agree with you that the future is murky for young people. That doesn't change my view that a 401k is preferable to a pension.