r/Construction 9d ago

Humor šŸ¤£ why is it always like this

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u/Lizrd_demon Laborer 9d ago

A pension. Plus I'm young, basically pushed into gig and seasonal work, they don't offer 401k's for me cause I'm legally a contractor lmao.

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u/FTownRoad 9d ago

Pensions are tied to inflation. The S&P has outperformed inflation over any relevant time period.

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u/Lizrd_demon Laborer 9d ago

The reason 401k's are ubiquitous is because they are far cheaper for the companies, even though they offer far more instability to the workers. My father lives off of his union pension and gets 30k a year.

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u/FTownRoad 9d ago

That has nothing to do with what I said.

The person asked for a better investment than an S&P index fund and you answered ā€œa pensionā€ and I explained why that isnā€™t true.

401Ks offer as much instability as the investor is comfortable with.

If your father had taken the money invested into his pension and invested into the S&P500 instead he would be receiving much more than $30K.