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In practice, 401k's have turned out to be significantly less risky for the employee than the pension plans they replaced. I suspect your argument would be bett
by ajross 4y ago
In practice, 401k's have turned out to be significantly less risky for the employee than the pension plans they replaced. I suspect your argument would be better targetted if it was framed around how large social security and other safety net programs should be.
But if you do allow that personal retirement savings should be encouraged and subsidized, the existing 401k program is turning out to be nearly optimal.
- earthboundkid 4y agoDidn't the pension funds all go broke because the regulators let them undercapitalize them to start with on the assumption they could make it up in the market, and then whenever markets went down and they would bust? I mean, I agree that it was a tragedy, but ISTM the blame goes to the people in the 60s and 70s who were like "Oh yeah, we don't need to pre-fund the pensions. GM will live forever, and the market will never go down."