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.
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