This 401(k) Reform Plan Misses What Makes Pensions Work

Once upon a time, not so long ago, about a third of all American workers had a gold-plated pension: When they retired, someone paid them nearly their full salary for the rest of their lives. They didn’t have to worry about the market, or inflation, or running out of money.

That time did not last, in large part because the someone who was paying for those pensions realized how expensive they were and how much risk they carried. So employers and governments around the world tried something different: Individual retirement accounts, which required everyone to manage their own risk.