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Happened in the private sector. Most millennials don't trust pensions and prefer 401k. As you are in control of the money and there isn't much that could be cha
by cobookman 8y ago
Happened in the private sector. Most millennials don't trust pensions and prefer 401k. As you are in control of the money and there isn't much that could be changed unfavorably in 50 years.
- closeparen 8y agoA government changing its mind about pensions could easily change its mind about the favorable tax treatment of 401ks. Or go even further and follow HN's exhortations to implement a wealth tax. Upper-middle-class retirement funds are a huge component of inequality; reducing that can only be good, right?
- cobookman 8y agoYou pay tax when withdrawing funds from 401k. Worst case they'll remove the 401k and force everyone to migrate to a Roth IRA. Which is the same as the status quo...aka not that bad. As for Roth IRA. I don't trust the government to honor their end of the deal. I can see them taxing withdrawals for the top 10% in the future.
- betterunix2 8y agoI am not sure millennials don't trust pensions; I think we never had the choice. It is also wrong to assume you are in control of your 401k, since for most people a 401k will be invested in mutual funds managed by the same businesses that manage pension funds. Some of those funds have absurd expense ratios that erode retirement savings.