Amazon?

[Pixguy]

I've been employee and employer and I never understood the feeling "I worked there for XX years and they owe me a pension" or on the flip side "I've employed them for XX years and they owe me more"
We worked for the company for what we thought was a fair rate and they in turn paid us for where they could make money.

 

[Jstpssng]

"I worked there for XX years and they owe me a pension

If that was part of the agreement while they were employed, then yes; the company does owe them a pension. Furthermore, if an employee strives to do his job and help the company thrive, some employers want to see them enjoy their retirement. The founder of the company I work for started out during the Great Depression, and was known to say “No employee of mine is going to stand on a bread line.” He implemented a retirement program in the mid-1950s, which had evolved into a 401k.

 

[Dftodd]

I've been employee and employer and I never understood the feeling "I worked there for XX years and they owe me a pension" or on the flip side "I've employed them for XX years and they owe me more"
We worked for the company for what we thought was a fair rate and they in turn paid us for where they could make money.

I worked for one company that offered a 401k and a pension.

They still track me down even though I haven't given them a forwarding address. They send me the pension disclosure info each year.

I only worked there 3 years and wouldn't qualify for the pension anyway.

 

[Pixguy]

If that was part of the agreement while they were employed, then yes; the company does owe them a pension. Furthermore, if an employee strives to do his job and help the company thrive, some employers want to see them enjoy their retirement. The founder of the company I work for started out during the Great Depression, and was known to say “No employee of mine is going to stand on a bread line.” He implemented a retirement program in the mid-1950s, which had evolved into a 401k.

I don't disagree that if that was part of the deal then yes, you're owed it and if an employer wants to offer it then great, you'll find employees staying longer.

 

[Torvy]

If that was part of the agreement while they were employed, then yes; the company does owe them a pension. Furthermore, if an employee strives to do his job and help the company thrive, some employers want to see them enjoy their retirement. The founder of the company I work for started out during the Great Depression, and was known to say “No employee of mine is going to stand on a bread line.” He implemented a retirement program in the mid-1950s, which had evolved into a 401k.

I guess I took his statement to mean the people who complain later that their employer didn't have a pension plan.

 

[JDZ735M]

Congress destroyed the company pension primarily through the advancement of the IRA in the 70s.

Our company had both plus profit sharing and bonuses.

 

[buckeyefarmer]

Unfortunately too many companies were not funding the pensions, making them worthless. IRAs put it in your hand to control.

 

[jyoutz]

1st major company I worked for had a pension plan. It pales in comparison to the money I have accumulated in my 401k plans.

Hi so? Pensions aren’t based on a gross accumulation of funds; they are based on the monthly annuity. It often takes 2-3 million in a 401k to generate the same lifetime annuity as a typical pension.

 

[kenmbz]

I have a pension from one company, a wall street firm.
They loved 401Ks as it generates more trading income and fees.
Pensions could never do what 401Ks did to bolster Wall street in the 90's.
There was so much money flowing, didn't matter whether the funds were making money for the clients or not.

I have a 401K and it has done well, but the volatility and peoples poor choices, will make a lot of retirees have little but SS to fall back on.

Amazon provides benefits, one of the resons why you see small businesses desperate for people.

 

[Torvy]

Hi so? Pensions aren’t based on a gross accumulation of funds; they are based on the monthly annuity. It often takes 2-3 million in a 401k to generate the same lifetime annuity as a typical pension.

No such thing as a typical pension. My pension will only pay 300 per month. My 401k will produce 50k per year and it is nowhere near 2-3 million. The 401k is 100% protected from the company. The pensions...it depends.

Average rate of return in the stock market over the past 50 years is 10%. Even with basic fund management, that means 50k per 500k of investment...annually. 2-3 million would return 200-300k annually. Shrewd investors can do much better than average. Even if my pension paid 100% of my last 5 years of salary it would not touch what I could make with a 401k. The sad part is that I did not take full advantage of my 401k when I was young and dumb. Plus, I was a stay at home parent for 5 years with no income, so no 401k. Rationally, I should have twice what I have now.