5 ms·
> a hybrid private/public pension model like the US I'm not sure pensions exist in the US beyond a few public sector ones. The US model is entirely private at
by mtberatwork 5y ago
> a hybrid private/public pension model like the US
I'm not sure pensions exist in the US beyond a few public sector ones. The US model is entirely private at this point for all intents and purposes.
Also keep in mind that only about 55% of the US population owns any stock (including retirement accounts) [0], so (IMO, not an economist) the US is most likely looking at a retirement crisis in the coming decades.
[0] https://news.gallup.com/poll/266807/percentage-americans-owns-stock.aspx https://news.gallup.com/poll/266807/percentage-americans-own...
- pembrook 5y agoThe US has a public pension scheme called "social security," which guarantees at least a minimum level of income in retirement to all citizens (although, not enough to live on IMO). This is intended to be supplemented with private investments via 401k & IRAs, which are actually relatively new programs (created in the late-1970s, but nobody even talked much about them until the 90s). So while most millennials understand they need to be saving privately in these vehicles (r/personalfinance has 15 million members), there's a huge forgotten generation in the middle who slipped through the cracks between the transition from industrial-era corporate pensions to personal saving. These are the folks who will unfortunately bear the brunt of the retirement crisis, having to get by only on Social security.
- mtberatwork 5y agoSocial Security is not a pension plan in the normal sense. It is structured and taxed differently than a pension that a company would provide.