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by FuriouslyAdrift 19 days ago
Pension funds still exist?
3 comments

There's $32trn of them: https://fred.stlouisfed.org/series/BOGZ1FL594090005Q

Who do you think is buying .. everything? They're holding substantial fractions of both the whole stockmarket and national debt.

I do not know anyone other than teachers, cops, or firemen that have pensions and all of those are grossly underfunded (see city of Chicago).

Now... if you mean IRAs then yeah... that's 99% of all private "investors"

EDIT: I forgot all about State and Federal pensions.

Private defined-contribution schemes which can only be accessed after a certain age and have tax breaks on contributions still count as pensions, yes.
The pension plans for many government employees still exist. CalPERS (California Public Employees' Retirement System), Illinois Teachers Pension, etc. (https://en.wikipedia.org/wiki/List_of_largest_pension_scheme...)

It's the corporate businesses that have gotten rid of pensions in favor of 401k plans.

Many government employees have pensions. Most of the ones I know are also ... skeptical of the future solvency of those funds by the time they retire.
Most (if not all) gov't pensions still have the defined benefit part as the "optimal" choice even when they offer defined contribution plans.

They can also offer some really nice benefits like accessing your pension income at 55 which can be a substantial portion of your last year's salary, and you can keep working elsewhere if you want.

I have a close friend who absolutely would have taken a DC plan if it were offered, since he does not believe the city he works for will be able to meet its financial obligations. It was not offered. Granted I haven't talked retirement with him in about 10 years, so it's possible a DC plan is offered now.
I feel you have to watch your plans like a hawk, because as a pension crumbles there's often a window of opportunity where they offer to "buy you out" (basically turn your DB into a DC mid-stream) - and sometimes the deal should be taken.