this post was submitted on 09 May 2024
100 points (100.0% liked)
Personal Finance
3738 readers
1 users here now
Learn about budgeting, saving, getting out of debt, credit, investing, and retirement planning. Join our community, read the PF Wiki, and get on top of your finances!
Note: This community is not region centric, so if you are posting anything specific to a certain region, kindly specify that in the title (something like [USA], [EU], [AUS] etc.)
founded 1 year ago
MODERATORS
you are viewing a single comment's thread
view the rest of the comments
view the rest of the comments
I think the "Pensions you don’t contribute to and the amount you get is fixed." is a bit murky. If you have a pension that probably means you have a lower salary compared to an equivalent non pension job, because part of your labor value goes into funding the pension. But the main thing is 401(k) puts a lot of responsibility on the individual. And as this article points out, if you put a lot put retirement financial planning on the individual, that creates a larger social problem since many people can't sufficiently do that themselves, even if they are being responsible with what they earn.
Yeah see the only different here is if the benefit is defined or the contribution is. Employers still give decently toward the DC and they manage the scheme. They have group schemes that all empkoyees are a part of and you cant leave it unless you leave the job or decide not to contribute.