The same can be said for private companies. The difference is that private companies are allowed to weasel out of their obligations and the federal government picks up their pension responsibilities... https://en.wikipedia.org/wiki/Pension_Benefit_Guaranty_Corpo...
Which is one reason that most private companies now offer defined contribution plans rather than defined benefit plans. That way a worker isn't dependent on the foresight, goodwill, or even existence of his past employer for his retirement. It is a far better for everyone involved. And if workers are nervous about investing these contributions into risky instruments they can use them to buy deferred annuities from AAA rated insurance companies and build their own "pensions".
> buy deferred annuities from AAA rated insurance companies and build their own "pensions".
Which, in a post-financial crisis world, also obviously involves relying on government-backing of the insurance companies and bailouts when ratings agencies hand out AAA ratings like candy. Ultimately, only the government can guarantee people a retirement. Which is why I personally think we should say "screw it" and just guarantee everyone a reasonable (livable) payout from social security...
bradleyjg|10 years ago
glesica|10 years ago
Which, in a post-financial crisis world, also obviously involves relying on government-backing of the insurance companies and bailouts when ratings agencies hand out AAA ratings like candy. Ultimately, only the government can guarantee people a retirement. Which is why I personally think we should say "screw it" and just guarantee everyone a reasonable (livable) payout from social security...