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Am I reading this comment correctly - don’t US workers get pensions that aren’t tied to their employers?

dhg72 3y ago
Nope!
sbradford26 3y ago
Pensions if a person gets them which is rare (in the US) is typically tied to their company or the government if they were employed by the government.
ghaff 3y ago
"Pensions" in the US generally refer to defined-benefit pensions, i.e. you worked here 10 years with a terminal salary of $100K so you get $X/month starting at age 65 (or whatever). In general, private sector companies have switched to defined-contribution schemes like 401Ks, which are tied to an employer but can be (and generally should be) rolled over to IRAs when you leave the company. Social Security is something else again that comes from the government but isn't usually called a pension.
deleted 3y ago
[deleted]
kayodelycaon 3y ago
Nope. My dad worked for a company for most of his life. They dropped pensions during his tenure and he got nothing.
- PopAlongKid 3y ago
  That's odd. Usually an employee is vested after five years. That means that even if they leave before "retirement" age (defined by the employer), they still get an annuity based on their vesting. When a company eliminates pensions, it applies to new hires and perhaps future contributions but does not retroactively eliminate benefits already accrued.
jandrewrogers 3y ago
Effectively yes, it is called Social Security. No one in the US refers to it as a "pension" even though it is equivalent to what many Europeans call pensions. The term "pension" is reserved for other defined-benefit retirement plans, which are no longer common in the US. Americans are consistently messaged and incentivized to save for retirement separate from their Social Security pension. Social Security is relative generous by the standards of the industrialized world. For example, I will receive $3600/month from the government at the standard retirement age, in addition to any other retirement savings I may have. Similarly, the government will pay for my healthcare when I reach retirement age.
- PopAlongKid 3y ago
  >Social Security is relative generous by the standards of the industrialized world. For example, I will receive $3600/month from the government at the standard retirement age, in addition to any other retirement savings I may have. Similarly, the government will pay for my healthcare when I reach retirement age. That amount is near the max, and not typical at all.[0] You must have had at least 35 high-earning years in your wage/earnings record. Also, the government only pays for part of your healthcare (Medicare Part A = hospitalization), you still pay for all the rest (routine checkups, treatment not requiring hospitalization, preventive care, prescription drugs). You don't get any coverage at all unless you enroll and pay your share of the premiums. [0]https://faq.ssa.gov/en-US/Topic/article/KA-01897 https://faq.ssa.gov/en-US/Topic/article/KA-01897
  - jandrewrogers 3y ago
    > You must have had at least 35 high-earning years in your wage/earnings record. Almost half of those years were the opposite of high-earning, and I don’t have 35 years yet. If it is near the max then it is because the fraction of years that are high-earning are carrying a lot of weight. I have been quite poor for a large fraction of my working life.
tristor 3y ago
Not by the time anyone in their 30s (or younger) now will retire. Social Security is running out of money. It’s also barely a pension.

Nope!

Pensions if a person gets them which is rare (in the US) is typically tied to their company or the government if they were employed by the government.

ghaff 3y ago

"Pensions" in the US generally refer to defined-benefit pensions, i.e. you worked here 10 years with a terminal salary of $100K so you get $X/month starting at age 65 (or whatever). In general, private sector companies have switched to defined-contribution schemes like 401Ks, which are tied to an employer but can be (and generally should be) rolled over to IRAs when you leave the company. Social Security is something else again that comes from the government but isn't usually called a pension.

deleted 3y ago

[deleted]

kayodelycaon 3y ago

Nope. My dad worked for a company for most of his life. They dropped pensions during his tenure and he got nothing.

PopAlongKid 3y ago
That's odd. Usually an employee is vested after five years. That means that even if they leave before "retirement" age (defined by the employer), they still get an annuity based on their vesting. When a company eliminates pensions, it applies to new hires and perhaps future contributions but does not retroactively eliminate benefits already accrued.

jandrewrogers 3y ago

Effectively yes, it is called Social Security. No one in the US refers to it as a "pension" even though it is equivalent to what many Europeans call pensions. The term "pension" is reserved for other defined-benefit retirement plans, which are no longer common in the US. Americans are consistently messaged and incentivized to save for retirement separate from their Social Security pension. Social Security is relative generous by the standards of the industrialized world. For example, I will receive $3600/month from the government at the standard retirement age, in addition to any other retirement savings I may have. Similarly, the government will pay for my healthcare when I reach retirement age.

PopAlongKid 3y ago
>Social Security is relative generous by the standards of the industrialized world. For example, I will receive $3600/month from the government at the standard retirement age, in addition to any other retirement savings I may have. Similarly, the government will pay for my healthcare when I reach retirement age. That amount is near the max, and not typical at all.[0] You must have had at least 35 high-earning years in your wage/earnings record. Also, the government only pays for part of your healthcare (Medicare Part A = hospitalization), you still pay for all the rest (routine checkups, treatment not requiring hospitalization, preventive care, prescription drugs). You don't get any coverage at all unless you enroll and pay your share of the premiums. [0]https://faq.ssa.gov/en-US/Topic/article/KA-01897 https://faq.ssa.gov/en-US/Topic/article/KA-01897
- jandrewrogers 3y ago
  > You must have had at least 35 high-earning years in your wage/earnings record. Almost half of those years were the opposite of high-earning, and I don’t have 35 years yet. If it is near the max then it is because the fraction of years that are high-earning are carrying a lot of weight. I have been quite poor for a large fraction of my working life.

tristor 3y ago

Not by the time anyone in their 30s (or younger) now will retire. Social Security is running out of money. It’s also barely a pension.