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Other retirees from the Top 500 firms get pensions and health care although in the last couple of years the price for them is rising.
Workers today get nothing..no pension plan nor health care after retirement. We are on our own with a 401K which will never compare to a pension plan. Big companies have been phasing out retirement benefits for quite a few years now by either increasing costs so much you can't afford it or just plain dropping it.
What I'm worried about is what happens in 20 years when these workers that only have a 401K to retire on starting hitting the retirement age.
I think you're selling the 401k short.
If I work for 35 years investing wisely the maximum in my 401k I'll have way more than any pension would've given me.....
This doesn't seem too bad. It's only for those 65 and older who would get medicare anyway. They are also getting an extra $300 a month to pay for other healthcare. Sounds like a smart move on GM's part...from the article:
Now GM retirees also must navigate the confusing world of Medicare -- a health insurance plan some find so bewildering that many settle for costlier plans without doing the research to find cheaper, more comprehensive ones.
Please give me a break. GM is actually providing help to get set up with new insurance. These people should be glad all they are losing (for now anyway) is health insurance
If I work for 35 years investing wisely the maximum in my 401k I'll have way more than any pension would've given me.....
You don't agree?
You sir are in the minority though. Workers are not forced to put anything in their 401K so we should not assume they are max'ing it out every year.
And your 401K can LOSE money in any given year while pensions are guaranteed fixed income.
A year old but this article shows some median and average 401K balances for various age groups and they are not big balances. Given this last year though I'm sure many people lost value in their 401K because the bulk of it is invested in equities.
We are on our own with a 401K which will never compare to a pension plan.
What I'm worried about is what happens in 20 years when these workers that only have a 401K to retire on starting hitting the retirement age.
I don't know why you say 401K will never compare with a pension. With the new laws, a new worker at age 18 will begin paying in to 401 K. It's automatic, the employer must enroll them, Yes the can opt out if they are really stupid, but then they have no one to blame but them selves.
If the new hire puts money away on an increasing basis for forty plus years, they can retire in fine style.
401K wasn't available to me until I was in my forties (There was no such plan before that time), and I still managed to put away a sizeable amount. Had it been available to me when I was 20, I would be swimming in clover. There is no reason for any employee starting work today, not to have a pot full of money by the time they retire.
It's time for people to be responsibility for themselves and not expect the government to do everything for them. One should start planning for retirement the day they start working, not wait until they are in their fifties. I did, and after almost three years of retirement, I have yet to touch any of my 401K money, and probably never will..! 401k is a great plan if used correctly. Start early and keep increasing your input. Every time you get a raise, put half into 401K
I'm in agreement with the posters that say 401K's are good. I have been max'ing mine out every year.
But from what I read that is what a minority of folks are doing.
We live in the age of government entitlement and I can't help but think they will want the government to fix all their problems and make sure they have a retirement check.
but I think your elected officials get life time benefits all thanks to your generous tax contributions. I mean, didn't Phil Graham say the recession was in our heads?
He must have been watching his soft porn movie at the time!
So instead they should do what? Fire 10k people so they can keep their health care for retirement? Shut down a few more plants and layoff 20k people? Let these companes get away? Get away from what? Bankruptcy... You don't want them to get away from bankruptcy?
There is nothing to say that any of your suggestions won't happen anyway.
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P Gramm
