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maybe replacing everyone's defined-benefit pensions with 401(k)s and IRAs wasn't such a good idea
by thescriptkiddie 1y ago
maybe replacing everyone's defined-benefit pensions with 401(k)s and IRAs wasn't such a good idea
- IgorPartola 1y agoWhy? Every barber and shoe maker and Uber driver I know are financial wizards that can navigate the stock market as well as the professionals. /s
- lotsofpulp 1y agoWhy do you think the defined benefit fund managers are better than the collective market for preventing concentration? Also, what about the increased risk of corruption leading to underfunded DB pensions? Which is apparently near certain, given that pretty much every defined benefit pension fund across the US is underfunded.
- deleted 1y ago[deleted]
- tick_tock_tick 1y agoNah pensions were always a horrible thing that ruined so many lives. No one's retirement should be bound to the long term success of the company they happened to work for.
- jandrewrogers 1y agoDefined benefit plans are the same thing with misaligned incentives and more middlemen taking a cut. Defined contribution plans didn’t spring out of the ether on their own. They were a reaction to evident rampant risks and deficiencies of defined benefit plans even after many failed attempts at reducing that risk via regulation.
- jltsiren 1y agoDefined benefit pensions are also invested in the market. It would be better to have Social Security with higher income limits, and with regular adjustments to contributions and retirement ages to ensure that the system is in balance. And something like IRA on top of that. Then you would have two different systems with different failure modes.
- theodius 1y agoIt wasn’t. Most people aren’t market experts so handing them the keys wasn’t a great idea. They should’ve just cracked down on pensions and made them more responsible (which they did after 401(k) creation).