4 ms·
pensions are defined benefits. if they truly worked for that pension, it'd be defined contribution.
by trgn 2y ago
pensions are defined benefits. if they truly worked for that pension, it'd be defined contribution.
- ok_dad 2y agoI guess I didn’t work for my health insurance since it’s a benefit then? What kind of nonsense are you talking about, “they didn’t work for their pension”? Clearly I’m misunderstanding what you’re saying because that would be stupid as fuck to say pensioners didn’t work for a pension because of some technical definition? I don’t get it.
- trgn 2y agoI meant that pension payouts are a legal claim, and somewhar untethered from what the actual amounts an individual puts into it. You're guaranteed a benefit, until death. in practice thwt benefit is met by new younger contributors, higher taxes,... You sense a pension is like insurance (a benefit, paid out because of legal contract) , and this burden by mathematical nexessity is carried unequally. Other people feel like it should be more like a return on prior investment, a burden carried individually. I think both are complementary fwiw because both by themselves have drawbacks, different moral hazards