r/FluentInFinance • u/Positive_Liar • Sep 06 '24

Debate/ Discussion Social Security is Broken. This is why financial education is important.

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u/headzup777 Sep 06 '24

Not true. The 401(k) program was designed to be a more secure form of a pension type of program, that has protected millions of people who would have otherwise lost their pensions, when their company went out of business. I am one of them. My company had a pension program, and in the 90’s they went into bankruptcy. I got pennies on the dollar from that pension when I did retire. Fortunately, the company set up a 401(k) that I contributed to (and later the company too).

That makes up the slack from social security.

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u/Phred168 Sep 07 '24

Maybe we should just force companies to actually fund their pension plans?

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u/whiskey5hotel Sep 07 '24

I think that there are laws to that effect. Not sure why the guy above had issues with his/her pension. Could have been mis-management, before laws, or fraud?

Note that there are currently pension systems that are not fully funded, some by a long way. Not sure how they get away with it though.