Pensions are outdated and are bad for both workers and employers. The idea that you get a guaranteed payout (defined benefit) creates conflicts when today's managers have to make decisions that affect the entire company over the next few decades. Considering that few managers believe that they will be in charge at the time the pension benefit are due, they are incentivized to push costs into the future through bloated pensions.The employee is then stuck holding the credit risk of their employer from long ago.
A much better system is a defined contribution, in which the employer makes a contribution to a retirement fund for the employee. The employee then has sole proprietorship of the funds, regardless what happens to the company.
A much better system is a defined contribution, in which the employer makes a contribution to a retirement fund for the employee. The employee then has sole proprietorship of the funds, regardless what happens to the company.