Pensions Extinct: American Dream Pulverized & Buried

Many workers believe pensions are key to achieving the American Dream. But getting those plans back isn’t easy

In the past, companies provided pensions, which guaranteed workers a fixed income during retirement.

However, most employers have shifted to 401(k) plans, where employees manage and invest their contributions with no employer guarantees.

This has put the burden of retirement savings on individuals.

New research reveals that a large majority of Americans, around 77%, believe that the lack of pensions makes it harder to achieve financial security in retirement.

They desire a pension system for all workers to ensure independence and self-sufficiency in their later years.

However, there are differing opinions on whether pensions are necessary for retirement security.

Some argue that pensions can be risky, comparing them to Ponzi schemes that may not have enough funds to pay promised benefits.

Others advocate for expanding Social Security or personal retirement accounts, claiming that defined contribution plans like 401(k)s have been successful in helping Americans build wealth.

Despite the support for pensions, it’s unlikely that many major companies will return to offering them.

Portable 401(k)s, which can be moved from job to job, are considered more suitable for today’s workforce.