These days, very few people get guaranteed pensions and they are almost always 401ks instead.
If you are running a business, isn’t it cheaper to provide pensions? You can invest the money in the same sort of funds that a 401k is invested in, but money not paid out (say, both retiree and spouse die) can be pocketed where 401k goes to whoever is a beneficiary like kids, extended family, charities, pets, etc).
In: Economics
It’s cheap and less of a risk for the company. With a pension, a company would still have to pay the worker even if they went out business. They have the responsibility to make sure they have enough for the worker as laid out in their defined benefit. It’s a long term liability.
With 401k, everything is shifted onto the employee and the company isn’t stuck with anything.
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