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alleged that GE was engaged in fraudulent business practices. In an extensive report, he accused GE of making fraudulent financial filings to cover up its huge obligations.
Ending of the article thus concludes.....
Quote:
Unfortunately, most American workers do not have corporate pension plans to rely upon. However, many do offer 401(k)s. With the withering away of pensions, it is another challenge for people to accumulate sufficient funds to retire with dignity and general comfort.
I have a (8-10k annual) GE pension when I retire 10+ years from now so I find it ironic how after telling a tale of how the pensions are unlikely to be fully paid, frozen etc. and that's if we can even trust their current financial position....gosh golly, isn't it too bad that we don't have these corporate pensions?
I know so many people that got 50% of their pension or other cuts, if people don't want to participate in their 401k at least they had that choice. Imagine being 50 with 25+ years in at GE and thinking your pension was going to be most of your retirement?
Well government is even worse with pensions. Illinois owes approximately 250 billion with a "b" and the Chicago pensions like Police and Fire are as little as 15-20% funded.
You simply can't trust others to invest for your retirement. That is something each individual must take ownership of which most won't.
Last edited by MSchemist80; 10-11-2019 at 07:54 AM..
You simply can't trust others to invest for your retirement. That is something each individual must take ownership of which most won't.
Yes, but sadly, most people can't be trusted to save for their own. My company froze its pension plan but being a class act, they substituted an additional 6% into your 401(k) even if you contributed zero. (They also matched 100% of the first 6% you contributed.) I knew one coworker who would immediately withdraw the contribution (it was made annually) even though he got taxed on it.
And he's an actuary.
The posts I see on FB (I get a lot of retirement-related topics in my feed) with comments from people trying to live on SS alone are really sad.
The 401k doesn't feel like a dignifying and comfortable substitute to the pension. In my view, it puts a tremendous amount of responsibility on the worker to understand processes and concepts that the educational system had in no way prepared them to do. I had an opportunity to contribute to my first one at 18, but I didn't, because I didn't know what it was for and because even if I had known, I would have felt cheated not to have the cash that I had just earned. Considering how little I was making as a waitress, I could have contributed most of my entire earnings and been left with very, very little to show for all those hours.
And now as a much older adult sitting with a lot more on the other side of the equation I wonder when Congress will decide they need to change the rules, and how and if the learning and strategizing I have done was in vain.
In the new job market, I think a personal/portable retirement account like a 401k is a lot better than a pension. Not everyone wants to stay working for the same company for 20-30 years to get the full benefit of a pension. Typically to get vested in a pension, you have to work 5 years. Plus who knows if the pension is fully funded as people are now finding out. If you have a pension, you should see if it's protected by the https://www.pbgc.gov See this story for what can happenPension Funds Failing At Catholic Hospitals
A 401K though, typically after a year or 2, the company match is full vested in your 401K. When you leave the company, you can elect to leave it where it is, roll it into the next company's 401k, or roll it into your own IRA.
I find it ironic how after telling a tale of how the pensions are unlikely to be fully paid, frozen etc. and that's if we can even trust their current financial position....gosh golly, isn't it too bad that we don't have these corporate pensions?
I know so many people that got 50% of their pension or other cuts, if people don't want to participate in their 401k at least they had that choice. Imagine being 50 with 25+ years in at GE and thinking your pension was going to be most of your retirement?
Hey, 50% of free money is better than nothing. 401k comes out of your pocket, and pension does not.
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