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View Diary: Drained retirement funds signal acute looming crisis (286 comments)

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  •  The current problem with pensions... (22+ / 0-)

    ...is not that they are inferior to other forms of compensation.  The problem is that, for many of us, the pension was a "promised" benefit which was used to justify average (or below average) wages.  Then, after 20-odd years of this, we discover that the "promise" could be broken without consequences.  Why didn't we save more during those 20 years?  Because we thought we were going to get a pension (from a fund managed by folks much better at it than we peons).

    If you're convinced that pensions are a bad idea, I suggest you start with our Armed Services.  Those folks are tough and nimble... they'll probably thank you.

    Don't be a DON'T-DO... Be a DO-DO!

    by godwhataklutz on Wed May 07, 2014 at 10:28:29 AM PDT

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    •  What we need is a Universal TSP program (1+ / 0-)
      Recommended by:
      jts327

      The TSP is the Thrift Savings Plan run for Federal employees.  It's huge and the low cost, even lower than Vanguard.  A lot of smart honest folks who have studied the issue think we need to move to a system where employees aren't at the mercy of the crap 401K plan their employer might foist upon them.   The high fees eat up the gains, because employer matches are getting smaller and smaller and because contributions are not by default with right to opt out.

      If folks were automatically put into a TSP like lifecycle fund that allocates based upon your age, say an automatic 7% unless you acted to opt out or increase the amount, and say an employer required match of 3-5%, maybe the retirement picture would look a lot brighter.

      And as long as we're dreaming, I'd have single payer to prevent medical bankrupcies and have a far more generous safety net for the long term unemployed and disabled!

    •  this this this this this (0+ / 0-)
      for many of us, the pension was a "promised" benefit which was used to justify average (or below average) wages.  Then, after 20-odd years of this, we discover that the "promise" could be broken without consequences.  Why didn't we save more during those 20 years?  Because we thought we were going to get a pension (from a fund managed by folks much better at it than we peons

      Politics is like driving. To go backward put it in R. To go forward put it in D.
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      by TrueBlueMajority on Thu May 08, 2014 at 08:02:47 AM PDT

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