DonaldTrump-telling them they will not cut Social Security and Medicare
(media.greatawakening.win)
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It used to be. It wasn't originally set up to be general retirement plans for everyone. It was to care for disabled who couldn't work, and back when most companies offered a pension. Now retirement plans are not even always offered, and good luck finding a pension outside of government jobs.
From my understanding, a pension plan is provided by the company and pays each employee who retires so much money for life. My grandpa retired from GM back in I think the 80s, and he's still getting money from his pension. A 401K is like an account that employees put their own money into and manage. Sometimes the company will contribute some as well. If not managed well, the money can run out during retirement and force people back to work. Also sometimes people live longer than they originally expected to.
https://www.investopedia.com/ask/answers/100314/whats-difference-between-401k-and-pension-plan.asp
We have a similar system in UK. When I was aged 21 I was not keen to lose money from my paycheck every month for it to go into "a pension." Smelled like a scam. However now I am aged 67 I am very pleased to have it. Everyone needs something to live on when they have had enough of working. Be careful though and look closely at how your pension is doing because our schemes usually have cheap low-talent people managing them and they don't invest very well.