5 ms·
There are no guaranteed returns. Stocks aren't guaranteed to beat inflation, even over decades. Now, my parents generation had truly guaranteed defined benefit
by nly 2y ago
There are no guaranteed returns. Stocks aren't guaranteed to beat inflation, even over decades.
Now, my parents generation had truly guaranteed defined benefit pensions where their employer effectively backstopped their lifetime liabilities. That not being available today is "unfair" in my view.
- jandrewrogers 2y agoA defined benefit pension can't guarantee anything either and you have no control over that risk. Ask anyone who received pennies on the dollar because the "backstop" went bankrupt with an inadequately funded pension. The big advantage of a defined contribution plan is that you control your risk of loss. If you feel stocks are too risky then don't invest in stocks.
- FateOfNations 2y agoOP seems to be Irish. Outside the US, "pension" means retirement plan/savings in general, including defined contribution plans. This contrasts with the US, where "pension" is a defined-benefit plan, almost always sponsored by one's employer or union.