Quote:
Originally posted by Mmmm, Burger (C.J.)
1. Businesses have an incentive to create pension plans, too. It means that workers won't hang on forever, but rather will realize that retirement is just as attractive as continuing to work. Avoids firings and dead wood--like your friend.
2. IRAs have admin costs as well. And having a 401k addresses the concern in 1. Forced savings also benefits the employer.
3. Tell it to a coal miner or steel worker, who'll probably die at 72 anyway. A one-size-fits-all retirement age, when there's a sharp division between white collar and blue collar labor, isn't without its problems.
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(1) I think unions originally drove it -- a lot of companies maintain generous pensions in an effort to keep employees from unionizing. It is easier to push people out if they know they will have enough to get by on.
(2) 401(k) addresses what issue in (1)?
(3) 2. Do steelworkers have short life spans? Huh.
