Originally Posted by mbgrayson
I agree that there is a trend away from pensions in many businesses.
That being said, what the heck? MLB is doing very well. The owners and players are thriving, and this strikes me as just plain greedy.
I have nothing against a well matched 401(k) plan. But the truth is that this a money saving move, period. Sure, there are some advantages (like portability) with 401(k) plans, but the real reason employers like them is that total responsibility for how the plan does is placed on the employees back. There is no hidden liability for the company should life expectancies lengthen or the markets crash.
Many young employees opt out completely (which is dumb), and many others cash out their plans when they switch jobs (also dumb, but sometimes necessary).
The long range problem will be that with fewer people on defined benefit pensions, older people will eventually be less affluent and more likely to need public assistance in their golden years (tax burden for younger folks). Smart and careful people (like AD) will do well with 401(k) plans. Dumb people(like me) will be buying Apple at $600 and losing their shirts.... I'm glad to be vested in a pension. MLB should offer at least that option to their employees as well.
Don't want to worry about your retirement being backed on the market? Then don't opt in to the 401K and handle your own retirement.