> the business itself would always be there to contribute to cover the shortfall
This is problematic because companies aren't eternal, and stock performance is somewhat liked to economic conditions, so if stocks are struggling, the company might be struggling, making the pension obligations a double-whammy, actually putting the health of the company at risk.
These days, in the US, there seem to be a lot of romantic notions of pensions, and I'm not against them per se, but having them managed and tied to employers was a really bad idea.
You could argue that having any kind of benecits at all tied to your employment is a bad idea... Yet Americans love to do that with healthcare
I'm not convinced having the average person manage their own retirement fund choices is any better. They lack bargaining power and they lack the savvy to make wise choices for the long term
This is problematic because companies aren't eternal, and stock performance is somewhat liked to economic conditions, so if stocks are struggling, the company might be struggling, making the pension obligations a double-whammy, actually putting the health of the company at risk.
These days, in the US, there seem to be a lot of romantic notions of pensions, and I'm not against them per se, but having them managed and tied to employers was a really bad idea.