I have a defined benefit pension from a previous employer and frankly I count it as zero in my financial planning since I have no idea if it’s actually coming or not.
I understand the dynamics have changed, but my boomer parents and in-laws are both enjoying retirement with the fruits of a defined benefit pension, and both are quite comfortable.
The only reason your elders are enjoying the fruits of a defined benefit pension is because the costs of their pensions was hidden by an assumption of ever growing populations and economic growth.
Additionally, why give control of your retirement funds to someone else when you can have control of your money? They're investing it in the same place as you would, and not getting any better returns.
Yes, the plan can have problems, but I'm just saying why I think people still like it, and it does have definite advantages over your own savings.
Lol you hope.
The article below mentions how poorly things can go, with private equity groups buying a company, things go poorly, it gets liquidated (pension gets dissolved), then the same private equity group buying it out of bankruptcy. Funny enough, with Marsh, the executive pension plan got a good payout relative to the thousands of store and warehouse employees.
The pension isn't free to offer. I'd much rather they increase my base pay or give a more generous 401k match.
https://www.washingtonpost.com/business/economy/as-a-grocery...
Guess which one of those two is happier? Sure, you may say the first group was foolish, but we are talking your average American workers here not an investor-savvy class.
Perhaps make it an option, if you want to gamble go for it, if you lose don't come crying for your retirement checks.
Having some savings as defined benefit does give you predictability. Even if you don't have a defined benefit plan through a company, it may make sense to convert some savings into an annuity of some sort.
The PBGC is just for show. They can't even guarantee the pensions of the multi employer defined pension plans that are about to fail, so there is a bill in congress to bail them out currently:
https://burypensions.wordpress.com/2019/01/09/butch-lewis-ac...
Look at the transfer values of some DB pensions they can be worth multiple millions and no way would an individual be able to build up an equivalent amount in a DC scheame
Well if you put millions in you get millions out.
Your DB pension is funded by those that came before you and those coming after.
Its phrasing in that sense would be similar to "Dude your making a big mistake"