A lot of people don't understand how pensions work. Basically it's a contract that the companies signed. They agreed that they would put a little money into a fund, and then they would invest that fund. Also, the amount invested was based on the actuarial tables at the time. Well now we're in the future and everyone is retiring or retired. The short sighted thing about pensions is that if the money was invested poorly or people lived too long, there is no money left. However, that doesn't relieve the company of paying their still living former employees. So what are pensions really? A savings account that must be funded by the millennials. How fair is that? It's not. Same thing is happening with social security and medicare. The baby boomers are simply socialist thieves.
The baby boomers are probably the last generation who will get pensions. I am a baby boomer and I worked 30 years so that my parents could have a comfortable retirement. The baton is passed down. Now millennials are contributing to our retirement. The last 5 years of my career, our company stopped contributing to our pension fund and switched over to a matching 401k. Any new hires from that point on did not get a pension but got the matching 401k. This is how it's going to be. Nobody predicted this was going to happen. My kids are millennials and they both have 401ks because they know there are no more pensions. Social security is going to be restructured too as it will run out of money in the next 10 years. I believe the legislature will impose a "cutoff" birth date. Say people 55 and over will not be effected but anyone born before that will be under a different setup for social security benefits. It's unfortunate that pensions and social security will not continue on for the next generation; therefore, it would be wise for any millennial to start putting money away in a 401k as soon as possible.
