401ks Don’t Work as Well as Pensions

Self-directed 401(k) accounts started popping up in 1980 and while some see them as an excellent way to finance their future, the truth is that they don’t even compare to pensions. 

Sadly, only a handful of jobs still offer pensions in the United States. Meanwhile, corporations who only look for profitability have continued to ignore the everpresent facet of retirement. The same people that have dedicated their careers to turn those profits are said to gain little else than stability during their working years and nothing more. 

People are left to their own devices when it comes to retirement planning which is not as easy as it sounds. Adding savings to a 401(k) account often comes with hardship, excessive budgeting and overworking. And for the most part, white college-educated individuals are those who can use this system with an advantage. 

Latinos, blacks, low-income workers and non-college-educated-workers struggle with this issue the most. Let’s not forget that combined, they make up the majority of the population too. For them, the lack of pensions has had the most devastating effects.