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Totally agree about diversification. Reliance on a company pension fund is terrifying. That said, the old pension model forced workers to make large contributi
by clbrmbr 3y ago
Totally agree about diversification. Reliance on a company pension fund is terrifying.
That said, the old pension model forced workers to make large contributions. The 401k model does not. (Unless your company has some amazing match deal… I’ve only ever seen shitty deals like 25% of up to 4% of salary, whereas more like a 30% savings rate is what’s really needed.)
- frumper 3y agoFor comparison's sake. I have a pretty good pension plan and my employer contributes about 27% of my gross salary to it along with the 8% I contribute. If someone offered a 401k match of 300% on my 8% I'd call that a good deal, but what you described is what people more often get.
- cool_dude85 3y agoCareful here. Some of that 27% is no doubt to achieve full funding, so shouldn't really be thought of as the "cost" to provide the pension per se, rather, the cost to catch up on previous underfunding.