A good article with respect to a pension concept but if in place for the past 10 years would have no better outcome.
Sooner or later one has to get to reality and that requires a review of who truly does not have a pension plan who needs one and does anyone want to save for retirement versus wanting to pay down debt and be able to live today.
You can take the horse to the water but you cannot make the horse drink it.
Variances and shifts in demographics by employer and/or industry present a fatal flaw for the TBP concept. A TBP with a higher average age of members will be more costly than one with younger members.
Logically, TBPs would really only work as a social security arrangement covering all workers (e.g. CPP, which can be characterized as a TBP), or on an individual basis (e.g. DC accounts with individual levels of contributions required for a targeted retirement benefit level and age and no mortality pooling in the accumulation phase).
Bob:
A good article with respect to a pension concept but if in place for the past 10 years would have no better outcome.
Sooner or later one has to get to reality and that requires a review of who truly does not have a pension plan who needs one and does anyone want to save for retirement versus wanting to pay down debt and be able to live today.
You can take the horse to the water but you cannot make the horse drink it.
Friday, September 23 at 3:26 pm |
Greg Hurst:
Variances and shifts in demographics by employer and/or industry present a fatal flaw for the TBP concept. A TBP with a higher average age of members will be more costly than one with younger members.
Logically, TBPs would really only work as a social security arrangement covering all workers (e.g. CPP, which can be characterized as a TBP), or on an individual basis (e.g. DC accounts with individual levels of contributions required for a targeted retirement benefit level and age and no mortality pooling in the accumulation phase).
Monday, September 26 at 12:39 pm |