2 ms·
As opposed to the much better final salary pension 401's are a pretty rubbish way to implement pensions.
by walshemj 8y ago
As opposed to the much better final salary pension 401's are a pretty rubbish way to implement pensions.
- ghaff 8y agoPensions worked a lot better when employees were often with IBM or Dupont for decades. And, even then, there was no guarantee that someone would be around to pay out the pension after a few decades--although there were various insurance mechanisms. Someone always needs to bear the risk that the planned payout will be less than forecast. Whether it's the employee or the company. And, at some point, if the money's not there it won't be paid out.