Check out this article on MSNBC from The Motley Fool, a financial advice service.
It turns out, though, that pensions can be good not only for employees, but also for the corporate world.
That’s right, corporations benefit when retirees have money to spend! And the move toward 401(k)s is hurting our economy:
But while companies are phasing out pensions, our economy is sputtering. As more and more people rely on 401(k)s rather than pensions, many people are not spending as freely as they otherwise might, thus creating a drag on our recovery. Despite that, many are not hoarding enough, and are on track to have gruesome retirements.
The article concludes with what we already knew:
America should rethink pensions and how we might bring them back.