Historically, pension benefits were one of the main benefits unions fought for (and won) so that their members could have an income in their old age and retire.
Today, very few workers still have pensions, but the few that do tend to be those represented by a union. In many states, this includes government employees: teachers, firefighters, police, etc.
And everyone else has 401ks which also suffer in a crisis, but the federal government can't bail out red state 401ks without also helping blue state 401ks, so in that sense 401ks are safer than pensions.
I don't even know what it would mean to "bail out" a 401(k). By definition you, the employee, are exposed to all the market risk. If you happen to reach retirement age in a down market, you're kinda just screwed. Should've made better investment choices 15 years ago.
This is why traditional pensions were usually a better deal for most employees.
Pensions are defined benefit. That is, it is specified exactly how much money you will receive in retirement.
A 401K retirement plan is not a pension. You save your own money and possibly an employer contribution, and you make your own investment decisions. The value goes up and down in accordance with what you invested in.
Why are you going all up and down this thread trying to pedantically show that people are using the term "pension" slightly differently to Wikipedia's definition? It's not contributing anything to the discussion.
Well I just don’t get it. People say ‘nobody gets a pension anymore’ but a 401(k) is just a different type of pension. My defines benefit savings plans literally say ‘pension’ in the product names.
The state pensions have no risk. They get a guaranteed payout regardless of stock market performance. The difference comes out of taxpayer pockets. With a 401k if the stock market crashes you are out of lock. The taxpayers won’t chip in the difference
Today, very few workers still have pensions, but the few that do tend to be those represented by a union. In many states, this includes government employees: teachers, firefighters, police, etc.