It seems to me that the employer will fund it either way. Maybe I’m misremembering stories of pensions being mismanaged and lost. I think the most important thing is that the employer actually does something to fund a retirement, in my way of thinking the 401k approach puts me in control of the money so I don’t rely on someone else to not fail.
Whether it’s promised bonuses, stocks, or retirement funds, my motto is always “show me the money”, and I’ll believe it when it’s in my hands.
I remember there were some cases of pensions disappearing about 20 years ago so you’re not imagining it. I can’t find any stories on it but yeah there were people who went to retire their pensions were just gone.
I found this on investopia while I was looking:
“A number of situations could put your pension at risk, including underfunding, mismanagement, bankruptcy, and legal exemptions. Laws exist to protect you in such circumstances, but some laws provide better protection than others.”
So maybe they all sued the out of those companies and tapped into past insurance policies to get paid and that’s why it’s not really talked about.
Bottom line is that if someone else has your money, it’s in their control. If you have the money in your 401k, you can watch it and control it.
https://www.investopedia.com/4-major-pension-problems-and-the-laws-that-protect-you-4692864#:~:text=A number of situations could,provide better protection than others
https://en.m.wikipedia.org/wiki/Enron_scandal