Are 401(k)s Better Than Pensions? Which plan do retirees prefer?
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- เผยแพร่เมื่อ 11 ก.ย. 2024
- Which is better - a 401(k) plan or a Pension plan?
As the traditional pension plans (defined benefit) have quickly been replaced by the 401(k) plans (defined contribution), we have seen more people struggling with retirement. Could it be that pensions are actually better than 401(k) plans?
Is the guaranteed income from a pension a better option than the flexibility of a lump sum from a 401(k)?
Join us as we discuss these option in detail and determine which is better - perhaps the answer is both should be used!?
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Public employees do put money towards their pension. It's a mandatory contribution that is taken out monthly. It's a misconception that the government is paying for all of the pension.
For sure!
Amen
I retired in 2013 at age 58 from a SoCal Municipality. The city contracted with Calpers. The city made full contributions into our pension plan.
In 2013 calpers implemented changes (pepra) and many cities began to require employees to contribute 3% of the 7% total contribution to their pensions. Of course many cities did have that requirement prior to these changes. My wife worked for the local school district who also made full contributions and also contracted with Calpers. I’m sure there has been changes regarding employee contributions since then for many cities in California. In addition the city pays for life time medical and dental. We truly have been blessed and we are thankful to the public we served.
Pension,I have been receiving mine for the last 7 years. I consider myself very fortunate to have one.
Unfortunately, not many people have access to pensions anymore. They need to build there own from retirement savings. You rarely hear someone not happy with their pension!
so do i.a union pension and fortunate to have it.
@@mmane257 Good for you. They are game changers. Did you claim Social Security benefits yet?
That combo gives your finances a 1-2 punch.
I’m lucky enough to have a job where I get both a pension and a 403b. But I agree that a pension is better but 401k/403b’s are still good.
A combo of a pension and a 403b can be a powerful and underrated retirement option.
PENSION all day everyday is waaaay better in the long run. IF AND ONLY IF you plan on staying at the job for 20 plus yrs. Also especially if your job offers an unlimited amount of Overtime. I work in Law Enforcement, Ive been on the job for 18 yrs and can receive my PENSION in 3 yrs with the 80 point rule of service. IM thankful to get a full PENSION for the rest of my life. 401K 👎!
Public pensions are quite valuable. Private pensions are disappearing.
Except if you died the day after your pension hits your kids get nothing and if you had $500k in a 401k they’d inherit the lump sum 401k and nothing from pension.
@@MaryLopez-em3rc Girl please 🙄. I don't have No Kids! No Wife! Stress Free Life! You gotta come better than that 🙄. Face the facts Pension Trumps 401k all day everyday in the long run 🏃♂️ because I will get an income from my job that I stay on with loyalty for 20 plus years for the rest of my life. That $400 thou or $500 thou that you have to put up your own money each pay period will run out over time BUT my pension will keep getting deposited in my bank account every month until I die. Plus just like you have to take your own money and contribute to your 401k every pay period. I've been contributing to an IRA retirement plan of my own through Edward D Jones on the side for the last 18yrs. This will go alongside my PENSION when I retire. AND also my two rental properties I have that bring in $5,000 a month. So I'm set. So anyway, this is why PENSION is better in the long run. Nowadays this young generation has to make sure every pay period to put a substantial amount of income into their job 401k plan. Which is your own money anyway 🤔. Or you wont have nothing in 20 plus years 😳. BUT my PENSION will keep going and going until I die. The bottom line here is everybody's situation is different and the PENSION works good for me. Good luck Ms Lopez with your 401k plan 😳.
@@MaryLopez-em3rc Not true, with Calpers pension system there are different ways you can leave something for your spouse or kids as beneficiaries.
My wife has 9.78% taken out of her paycheck for a pension.
retired in 2021 with a union pension at 62.and started collecting my SS in january of
2023 at 63.so glad i have a union pension
Having a pension and social security usually affords one the ability to delay at least one.
You guys …I had to contribute to 1/2 my pension fund. Also the diff between 401k and pension is that 401k is until it lasts and pension is until your deceased. .
I have seen too many videos of employers like Yellow, Sears, Detroit government, defaul on pensions. The benefit was supposed to be no risk to the employee and sadly I see that isn't trus.