General Discussion
In reply to the discussion: 401Ks are a disaster: Column [View all]duffyduff
(3,251 posts)but companies exploited loopholes in ERISA to ditch the pensions altogether and provided these DIY savings plans as retirement plans, which they are NOT and can never be. They did it to save money, not to help employees.
These defined contribution programs were originally for high-paid managers and executives, but during the Reagan years eligibility for these plans was opened up for millions of workers. They are a raw deal.
You'd have to have literally hundreds of thousands of dollars, if not over a million, in one of these defined contribution plans to get any substantial monthly benefit in retirement. You have an income stream only as long as there is money, while in a pension, you get a monthly benefit for as LONG AS YOU LIVE.
You tell me which is the better deal?