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Defined-benefit plans do not work. Maybe you can pick out some arbitrary 20/30/40 year window where they did, but with current demographics and projects demogra
by pc86 3y ago
Defined-benefit plans do not work. Maybe you can pick out some arbitrary 20/30/40 year window where they did, but with current demographics and projects demographic changes the math just doesn't add up.
At least with defined-contribution plans you are able to save for yourself rather than just hoping your retirement fund is still there in 50 years and having to save for yourself on top of that.
- ghaff 3y ago>Defined-benefit plans do not work. Or at least they were generally oriented towards multi-decade employment with the government or a large manufacturing company. There were pension fund protections put in place over time and I won't personally regret having a modest payout from a long-ago employer whose pension fund has made it through a couple acquisitions. But defined benefit pensions are another case of tying important benefits to an employer which people shouldn't generally favor, especially today. It's nice having a small lottery ticket I was probably only vaguely aware of at the time but it's not really good policy.