the more i read about 2017 defined pensions x 401k plans and which is better...the more i realize just how much corporate america/1%ers have hoodwinked the american public
let's underfund a pension and then we'll watch them scream to get out of the pension and demand a 401k match. hmmm...instead of paying them $32,000 p/y in retirement, we'll give the majority $4,000 per year in 401k match.
Sorry, That dog won't hunt.
Hoodwinked? Ha, that would be
all of those that are
happy participants in the IAMPF with
ZERO control of their money.
The example you give that I highlighted is
wrong. Companies put in a very similar amount to 401K's that they have for pensions. They are
ALL invested in the market, thats how they grow to the point of then being able to pay the recipient a larger sum at the end of a number of years in the program.
The difference is they don't have the administration costs with a 401K that they did with pensions, and yes, they don't have to keep 401K's funded at selected levels like a pension, also, those companies also have ZERO control of any of those monies.
100% control of 401K monies goes to the
individual.
Control:
Invest as much or as little as you want in whatever you want, aggressive or conservative.
Totally portable if you leave the company.
No strings if you retire early.
All monies can be passed on to family members.
Given how the pension laws have changed, I'll gladly take a 401K over a pension, but what we need to fight for is a
much enhanced 401K.
We need to insist on
contributions, not a match.
A 9.9% contribution would have netted me over 4X the 4K you quoted in your example last year(yes, I worked a lot of hours)
Any effort to diminish 401K's as being the
lesser of retirement vehicles will get a response from me every time.
If used properly, it's easily the best vehicle for many.