Pension Plan Research Paper

A pension plan is a defined plan where an employee contributes a portion of salary towards retirement and the employee helps with this. A 401(k) plan is a defined contribution plan, that is based off what the employee contributes and a percentage up to a limited percent is contributed by employer.
As an employee, I would choose a pension plan because I could be more secure in the fact I will be able to retire. Where 401(k)s are usually based off stock market results for companies your money is invested in. When the financial collapse of 2008, a lot of people lost their 401(k) retirements and they were no longer worth enough for people to retire; a pension plan is money that is put away in account for you when you retire. I don’t believe pension plans involve investments in the stock market, so this would be an added bonus for people that don’t want to risk it. …show more content…
I would probably offer some sort of 401(K), unless of course I had the finances to cover a pension plan. I would want to guarantee my workers could retire at the age of retirement rather than waiting for many years after due to lack of funds. I was reading an article on the financial crash of 2008 and it briefly explains why pensions offer more security than 401(k) plans. Most people that had pension plans were still able to retire and those with 401(k) plans had to continue working. But the truth is even if it wasn’t for the crash most people still wouldn’t have been able to retire. But the article also says that those in their 20’s will probably never be offered a pension plan because they seem to be a thing of the