In the US, people working up through the late nineties got pensions specific to whatever company an employee works for. Now there just aren’t pensions for any workers.
I am not sure about the Netherlands but where I am you have superannuation which is completely independent from your job and you control who it’s with yourself. When you change jobs you just let your new employer know where to send your contributions to.
We don’t rely on super/pensions for benefits before retirement age and have universal health care too.
For virtually all US workers, there is social security. This is roughly equivalent to the national pension system of other countries. You and your employer both contribute a fixed percentage of your paycheck. Upon reaching retirement age, you then get a defined contribution.
Then there are employers based pension plans. The same basic principle applies. Put money in, get money out upon retirement. It is considered a bad deal for employers, because they have a ton of financial liability on their books. In terms of monetary compensation, it is good for employees. However it takes a ton of time to be eligible, which means they can’t increase their salary by job hopping and are vulnerable to layoffs. Most employer pensions are gone outside government pensions.
Finally, there are defined contribution accounts. You contribute a certain percentage of your paycheck into a tax advantaged brokerage account. You then invest these contributions, typically in a target date retirement fund. it is also common for an employer to match contributions.
I think a lot of the people sticking around at one job are the ones with pensions.
You need portable pension plans that move with you job to job and accumulate nonetheless, as we have in the Netherlands
In the US, people working up through the late nineties got pensions specific to whatever company an employee works for. Now there just aren’t pensions for any workers.
But hey at least they came up with this brilliant retirement plan where you can gamble your salary on the stock market instead /s
I think it’s shit that it’s like this however not being tied down to a job you hate is nice.
I’m confused as to how that works. Different pensions can promise different benefits. How does that work when switching jobs?
I am not sure about the Netherlands but where I am you have superannuation which is completely independent from your job and you control who it’s with yourself. When you change jobs you just let your new employer know where to send your contributions to.
We don’t rely on super/pensions for benefits before retirement age and have universal health care too.
So the US has three retirement systems.
For virtually all US workers, there is social security. This is roughly equivalent to the national pension system of other countries. You and your employer both contribute a fixed percentage of your paycheck. Upon reaching retirement age, you then get a defined contribution.
Then there are employers based pension plans. The same basic principle applies. Put money in, get money out upon retirement. It is considered a bad deal for employers, because they have a ton of financial liability on their books. In terms of monetary compensation, it is good for employees. However it takes a ton of time to be eligible, which means they can’t increase their salary by job hopping and are vulnerable to layoffs. Most employer pensions are gone outside government pensions.
Finally, there are defined contribution accounts. You contribute a certain percentage of your paycheck into a tax advantaged brokerage account. You then invest these contributions, typically in a target date retirement fund. it is also common for an employer to match contributions.
Holy fuck that’s a thing?
Holy fuck you guys don’t have that?