3 ms·
Sure however: 1. They can allocate measurably portions of it to low risk investments, bonds, etc. 2. A qualified direct benefit plan (which is referred to as
by CuriousCosmic 3y ago
Sure however:
1. They can allocate measurably portions of it to low risk investments, bonds, etc.
2. A qualified direct benefit plan (which is referred to as a pension) has guarantees attached to it. Even if the company goes completely under and all that money bursts into flames, the PBGC (https://www.pbgc.gov/ https://www.pbgc.gov/) will guarantee the payout of the pension to the pensioner and foot the bill.
I'm not trying to suggest that there aren't costs that need to be borne by someone but forcing the worker to bear those costs seems like it's quite obviously the wrong choice (they should be allowed to bear it if they want to though).
- seanmcdirmid 3y agoBonds don’t pay out much over inflation, and most retirement plans bank on contributions making much more than inflation to be solvent. A lot of our debt is simply savings for retirement on the other side, it is very necessary for anyone to invest these days (directly or not) if they have any hope of not being destitute when they can’t work anymore. More than that, even if we left it to the government (eg a better funded Social Security), they would have to invest as well, there simply is no way around it given current moribund population growth.