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The difference is that if the stock market dips, you still get paid a pension for the set amount of time (paid out of company profits if it has to). With a 401k
by withinboredom 3y ago
The difference is that if the stock market dips, you still get paid a pension for the set amount of time (paid out of company profits if it has to). With a 401k, you can watch years of your retirement disappear.
- lotsofpulp 3y agoIf the stock market dipped permanently, those pensions would not pay either because they are all invested in the same equities. Hence why the government repeatedly provides a backstop whenever things start to take a downturn.