dex
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
- Joined
- Oct 28, 2003
- Messages
- 5,105
Why is the 401(k) a con?
Possibly because companies moved away from defined pensions to 401k w/matching $ from the company. Now companies are dropping the matching $ or reducing them.
Pensions weren't/aren't too good also since they rely upon the company being in business for many decades. If you work for a company for 40 years then that company needs to be in business for another 25-30 years to cover your life span. That could be a con also.
But, pensions were also a con. Usually, a person had to work for 5-10 years to be vested and then work at the same company for decades to get a a worth while amount out of it. So if you changed companies before vesting or didn't stay long enough you didn't get much.
I also think the pensions discussion is a red herring. Unions, government and large corporations had them but a large percentage of workers did not.