Why Workers Prefer Traditional Pensions Over 401(k)s

Reported 7 days ago

Boeing's recent contract negotiations revealed that its workers strongly desire the reopening of a defined-benefit pension plan, which they previously rejected in favor of a 401(k) option. This preference highlights two factors: the perception that employers cover defined-benefit plan costs while employees contribute to 401(k)s, and the higher benefits typically associated with Boeing's pension plans. Despite calculations showing that 401(k)s can offer better returns, workers remain attached to the stability and perceived security of traditional pensions.

Source: YAHOO

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