GE freezes pensions for 20,000 employees – aka why I always urge people to invest in their own retirement funds
I see a lot of posts here about pensions vs 401ks, or people who say “I’m not worried because I’ve got a great pension plan”, or something to that effect.
Well, this is a stark reminder that pensions are not bulletproof. Yes, ALL investing is some form of gambling, but with 401ks and IRAs it’s at least YOUR money, which you control and can withdraw as needed. I am not saying that pensions are inherently bad and that no one should ever use one. They are a great cushion to your other assets. But please, please, please: do not SKIP other forms of investing because you think you’re going to be set for life in retirement thanks to a company pension plan.