Do you know what percentage of the stock market is made up of 401k or similar retirement plans?Which is why pensions are fucking amazing... And LOOK! Most of developed Europe has them, unlike us.
On a side note, if the companies that Boomers have all their money invested in go boom and the companies that they all get their pensions from go boom does that mean they become dependent on the younger generations to support them? The younger generations that they told to sit and spin? All while they are dropping like flies because the refuse to listen to anybody telling them what's actually good for them?
I know realistically that's not what's going to happen, but god damn, that would be fucking hilarious. In a very, very dark way.
If we didn’t have 401k plans, the market would be that much smaller. You’d move the risk from the individuals portfolio to the individuals employer. If the market/portfolio tanks, it can come back. If an employer shuts their doors, then where does that leave a retired person?
I get that the 401k is better in some situations and a pension is better in others. I can also see how the shift from pensions to 401k plans has altered the dependency on the market’ performance and values.