Many workers on the verge of retirement have poorly funded 401(k)s which,of course, are employee saving plans not pension plans. Many employees long for the traditional pension.
In addition, law on the 401(k)s is weak and many employees who took their 401(k) money when they were laid off found that up to 1/3 of their account had been taken in "management fees."
Workers who belong to a union are more likely to have a traditional pension at work.
Some 82 percent of union members have access to traditional pensions,compared with 21 percent of nonunion employees.
According to Jonathan Barry, a partner with Mercer's retirement risk and finance consulting group:
Unions certainly will negotiate and have some ability to hang on to pensions through negotiations.
Less than a third (31 percent) of employees were offered a traditional pension at work in 2010, and only 28 percent participated, according to the Bureau of Labor Statistics.
The best retirement benefits are in the public sector. A large majority of state and local government workers (84 percent) were offered a traditional pension in 2010, compared with just 20 percent of private industry workers.
Barry added:
Most people today will never remain with the same employer for their whole career.
The bottom line is that only 21 per cent of Americans enter their senior years with a pension. Anyone who thinks Social Security won't be there for their retirement needs to rethink how they will be able to retire.
Without Social Security, most Americans would end up on welfare in their senior years.
Do not let conservatives talk Social Security down. It is a wonderful program and private enterprise will never be able to offer a competitive alternative.
The better classes are tired of the insane howling of the lower strata and they mean to stop them.--William Tecumseh Sherman
source: http://money.usnews.com/money/retirement/articles/2011/02/07/7-reasons-you-dont-have-a-pension
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