Why Did Pensions Disappear?
(thatch.ai)
In the late 1970s, 401(k)s didn’t exist. When you retired, you often received a pension from the company you worked at for decades. Then something unexpected happened: A 1978 law gave a new option. Within a decade, 401(k)s would go from early adoption to a complete retirement solution. Government commitment to the approach gave the concept needed credibility. Today these assets are estimated at $5 to $10 trillion dollars, while pensions cover just 13 percent of workers. [0]
In the late 1970s, 401(k)s didn’t exist. When you retired, you often received a pension from the company you worked at for decades. Then something unexpected happened: A 1978 law gave a new option. Within a decade, 401(k)s would go from early adoption to a complete retirement solution. Government commitment to the approach gave the concept needed credibility. Today these assets are estimated at $5 to $10 trillion dollars, while pensions cover just 13 percent of workers. [0]