[quote=harvey][quote=CA renter]Your thoughts? How do you see DC pensions actually working, over the long term, in real life?[/quote]
Here’s my plan, see if you can follow along:
– People save for their own retirement.
– When they retire, they live off their savings.
– If their savings isn’t adequate for the lifestyle they would like to have, they adjust their lifestyle.
Here’s the part that may be especially difficult for you:
– Retiree’s don’t take governments to court, demanding more money forcing existing public services to be cut or eliminated because the retirees failed to plan properly decades prior.
It’s complicated, I know. Hard to follow without all the compensation formulas, spiking, guaranteed returns, “13th payments” and the long list of other shenanigans. It’s really hard to get one’s head around the idea that people just save their own money and that’s what they get and they don’t get to ask for more later.
You see, “DC pension” that you describe as some bogeyman is just a savings account.
But all of the Piggs, save two, have been able to grasp it. Maybe someday you will also.[/quote]
harvey (aka pri_dk), if you think there are only TWO Piggs who grasp this concept, you need to put on your thinking cap. Let me clue you in, here. There are several more Piggs here who are currently working FT (for the gubment) under the premise that they will eventually be due a pension under a “defined benefit plan.”
I’m truly sorry for you that YOU DIDN’T CHOOSE to attempt to “qualify” for one of these eligible positions in line for a(n eventual) DB plan upon retirement. However, that decision was YOUR CHOICE! You COULD have elected to “jump thru the proper hoops” in attempt to get hired … alas but you didn’t! Thusly, you have NO RIGHT at this late date to condemn those persons who have served their qualified (faithful) service so as to earn their current pensions.
