401(k) Won for Employers—Now Retirement Risk Hits Employees

#thismorning | #401k Won for #Employers—Now #Retirement #Risk Hits #Employees | John A. Ruddy, DPS, CFA, CPA, University of Scranton | #Tunein: broadcastretirementnetwork.com #Aging, #Finance, #Lifestyle, #Privacy, #Retirement, #wellness University of Scranton's John A. Ruddy, DPS, CFA, CPA unpacks the major shift in retirement planning—from defined benefit pensions to defined contribution plans like 401(k)s. Dr. Ruddy explains that employers moved away from pension promises largely due to long-term funding liabilities and balance-sheet risk—especially as workers live longer. He also breaks down how shifting to 401(k)s reduced what companies had to pay year-to-year, while pushing more of the responsibility for retirement income onto employees. Next, Dr. Ruddy discusses where pensions still exist today, focusing on government roles and union-covered workers, and why the corporate landscape is so different from those sectors. Dr. Ruddy highlights the real-world challenge many people face: instead of having retirement managed through an employer promise, individuals are expected to make decisions about investments, contributions, and risk—often with limited financial guidance. The conversation then turns to Social Security. Dr. Ruddy explains that the issue isn’t just “money”—it’s political decisions about how benefits are maintained over time. They also discuss the potential consequences of benefit adjustments, including why lower-income workers may be impacted more heavily due to fewer savings and less access to employer retirement plans. Dr. Ruddy discusses a possible “third ways,” including hybrid pension structures, and whether the U.S. could learn from other countries in Europe and Asia that face similar intergenerational challenges. They close with the idea that funding retirement is expensive—especially as longevity increases—and that solutions often require hard trade-offs. #DefinedBenefit #Pension #401k #DefinedContribution #RetirementPlanning #SocialSecurity #RetirementIncome #PersonalFinance #FinancialLiteracy #IRA #HybridPensions #IntergenerationalEquity #LowIncomeWorkers #WealthBuilding #EmployeeBenefits #TSP