[smitty1e]

> In 1980, 38 percent of private-sector workers had defined-benefit pension coverage. By 2023, that number had fallen to 11 percent. [15] Government workers, who have the political power to maintain the old arrangement, still have pensions at a rate of 75 percent. [15] The private sector abandoned the model because it could. I wish I’d known when I was young what I know now about government jobs.

I wish I'd had better tools for budgeting and retirement accounts.

This argument would have much more heft if it discussed 401k accounts and financial planning.

[lotsofpulp]

The argument has no heft at all, because it ignores the laws that require actually funding a defined benefit pension plan, such as ERISA 1974 and PPA 2006, which exempt taxpayer funded pension plans from any and all funding requirements.

The private sector abandoned the model because the promises only made sense with fantasy accounting, and once that was reigned in, they didn't have the power to tax future generations, so they naturally went away. Also, the government pays under market for labor, because the government employee unions prioritize not being able to be terminated today and deferred compensation over higher, market rate compensation today.

It's a moot point anyway, since nearly free target date mutual funds and index ETFs exist where you can get all the benefits of stock market gains without any of the agency risk and cost of pension fund managers and employees. They have been obviated.

[wmorgan]

Yeah, it’s hard to reconcile the assertions by the author, that he has contributed in a "disciplined" way to his 401(k), and he’s 41, and he doesn’t think his savings will replace his income. The S&P 500’s total return over the past twenty years has been around 11%, annualized. That’s on track to millions, maybe even tens of millions for him by retirement age.

Maybe he's nervous comparing the top-line number in his retirement account to his expected expenses, but (a) he's got 25 years of compounding ahead, and (b) anything else he manages to save in the meantime -- including on his mortgage -- is going to help as well.