Many workers believe pensions are key to achieving the American Dream. But getting those plans back isn’t easy
by cnbc_official
Many workers believe pensions are key to achieving the American Dream. But getting those plans back isn’t easy
by cnbc_official
2 comments
Many Americans long for the days when companies guaranteed workers income in retirement.
That includes Sara Schambers, a fourth-generation Ford auto worker and member of the United Auto Workers union, who saw her grandparents retire with financial security. But after obtaining a permanent position in 2012, the same benefits have not been available to her.
“Without a pension and post-retirement health care, you have people leaving this company after 30 years’ service with nothing more than a, ‘Have a nice day, hope the stock market doesn’t crash,’” Schambers told Senate leaders during a hearing in Washington, D.C., on Wednesday.
In an emailed statement, a Ford spokeswoman said the company “provides a very competitive 401(k) plan for our UAW-represented employees.”
“The company contributes 10% of employee base wages, plus $1 per hour worked (capped at 2,080 hours a year), with zero employee contribution required,” she said. Plan participants may choose lower-risk investment options if they want to minimize their exposure to stock market fluctuations.
More: [https://www.cnbc.com/2024/03/01/many-workers-believe-pensions-are-key-to-achieving-the-american-dream.html](https://www.cnbc.com/2024/03/01/many-workers-believe-pensions-are-key-to-achieving-the-american-dream.html)
Most people don’t work at a job long enough these days for a pension to be worth anything. I have been at a job over 2 decades with a pension and unless you work 15 years or more your pension will be peanuts when you retire.
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Pensions are calculated based on years of serviced and high 3/5 salary.