IBM freezes pension, switches to 401(k)

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Also worth mentioning: you probably can't retire.

With the loss of defined benefit plans, people will have to rely on a copmbination of 401(k) plans and social security.

As a number of studies have shown, unless people are encouraged or required to join 401(k)'s, they don't. Or if they do, they contribute a sensible amount given their current needs, but far from enough for retirement.

And then, as 401(k) holders know, the "reasonable" approach to 401(k)'s is to take some risks. In other words, they lost most gains and maybe some of the principle in 2001.
Years of supposed accumulation toward retirement have been lost. So years more work will be required before enough money has accumulated. And because that money will be earned late rather than early in working life, many more additional years.

Oh, and you do know that social security will soon go broke (pay out more than it takes in) because there is no money in the supposed "trust fund" that's looted every year to pay for current expenses(?).

Whenever the taxpayers decide that they're not willing to pay what social security costs in a given year, the benefits will begin their steady decline. Live long enough and social security will reach $0 a month.

So, enjoy the thought of retirement. You can afford to think. But you can't afford to leave your job, assuming you can keep it.

Posted by: Anton Philidor   Posted on: 01/06/06 You are currently: a Guest | Members login | Terms of Use

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