3 ms·

Pension funds still exist?

pjc50 5mo ago
There's $32trn of them: https://fred.stlouisfed.org/series/BOGZ1FL594090005Q https://fred.stlouisfed.org/series/BOGZ1FL594090005Q Who do you think is buying .. everything? They're holding substantial fractions of both the whole stockmarket and national debt.
- FuriouslyAdrift 5mo ago
  I do not know anyone other than teachers, cops, or firemen that have pensions and all of those are grossly underfunded (see city of Chicago). Now... if you mean IRAs then yeah... that's 99% of all private "investors" EDIT: I forgot all about State and Federal pensions.
  - pjc50 5mo ago
    Private defined-contribution schemes which can only be accessed after a certain age and have tax breaks on contributions still count as pensions, yes.
jasode 5mo ago
The pension plans for many government employees still exist. CalPERS (California Public Employees' Retirement System), Illinois Teachers Pension, etc. (https://en.wikipedia.org/wiki/List_of_largest_pension_schemes_in_the_United_States https://en.wikipedia.org/wiki/List_of_largest_pension_scheme...) It's the corporate businesses that have gotten rid of pensions in favor of 401k plans.
aidenn0 5mo ago
Many government employees have pensions. Most of the ones I know are also ... skeptical of the future solvency of those funds by the time they retire.
- bombcar 5mo ago
  Most (if not all) gov't pensions still have the defined benefit part as the "optimal" choice even when they offer defined contribution plans. They can also offer some really nice benefits like accessing your pension income at 55 which can be a substantial portion of your last year's salary, and you can keep working elsewhere if you want.
  - aidenn0 5mo ago
    I have a close friend who absolutely would have taken a DC plan if it were offered, since he does not believe the city he works for will be able to meet its financial obligations. It was not offered. Granted I haven't talked retirement with him in about 10 years, so it's possible a DC plan is offered now.
    - bombcar 5mo ago
      I feel you have to watch your plans like a hawk, because as a pension crumbles there's often a window of opportunity where they offer to "buy you out" (basically turn your DB into a DC mid-stream) - and sometimes the deal should be taken.

pjc50 5mo ago

There's $32trn of them: https://fred.stlouisfed.org/series/BOGZ1FL594090005Q https://fred.stlouisfed.org/series/BOGZ1FL594090005Q Who do you think is buying .. everything? They're holding substantial fractions of both the whole stockmarket and national debt.

FuriouslyAdrift 5mo ago
I do not know anyone other than teachers, cops, or firemen that have pensions and all of those are grossly underfunded (see city of Chicago). Now... if you mean IRAs then yeah... that's 99% of all private "investors" EDIT: I forgot all about State and Federal pensions.
- pjc50 5mo ago
  Private defined-contribution schemes which can only be accessed after a certain age and have tax breaks on contributions still count as pensions, yes.

jasode 5mo ago

The pension plans for many government employees still exist. CalPERS (California Public Employees' Retirement System), Illinois Teachers Pension, etc. (https://en.wikipedia.org/wiki/List_of_largest_pension_schemes_in_the_United_States https://en.wikipedia.org/wiki/List_of_largest_pension_scheme...) It's the corporate businesses that have gotten rid of pensions in favor of 401k plans.

aidenn0 5mo ago

Many government employees have pensions. Most of the ones I know are also ... skeptical of the future solvency of those funds by the time they retire.

bombcar 5mo ago
Most (if not all) gov't pensions still have the defined benefit part as the "optimal" choice even when they offer defined contribution plans. They can also offer some really nice benefits like accessing your pension income at 55 which can be a substantial portion of your last year's salary, and you can keep working elsewhere if you want.
- aidenn0 5mo ago
  I have a close friend who absolutely would have taken a DC plan if it were offered, since he does not believe the city he works for will be able to meet its financial obligations. It was not offered. Granted I haven't talked retirement with him in about 10 years, so it's possible a DC plan is offered now.
  - bombcar 5mo ago
    I feel you have to watch your plans like a hawk, because as a pension crumbles there's often a window of opportunity where they offer to "buy you out" (basically turn your DB into a DC mid-stream) - and sometimes the deal should be taken.