Yet more reasons on why we need to cover our own asses.
The article linked below goes over a recent episode of Frontline outlining what retirement is today and how we just cannot depend on, or even expect, pensions and other retirement benefits.
We all know that thousands of pensions are underfunded. We've heard the tales of people who dedicated their lives to a company only to see it slip into bankruptcy and take all of its retiree benefits with it...bankruptcies are becoming an acceptable way for companies to get out of their pension obligations.
According to the Frontline report, here are some of the companies with the biggest pension fund deficits:
ExxonMobil
Ford
Lockheed Martin
General Motors
Raytheon
Pfizer
DuPont
Goodyear
IBM
Don't work for any of those companies? Don't feel too good just yet, because it doesn't matter. Your company could easily be further down on the list or primed to climb to the top of it.
The truth is that the majority of companies don't care about taking care of loyal employees. And I didn't make that up, kids. The evidence is abundant and manifested in things like outsourcing, offshoring, downsizing and bankruptcy filings to avoid pension payouts.
It's all pretty depressing. And depressed and oppressed is how we inevitably feel when we realize we've let big corporations control our destiny. We must realize that our fate—financial, educational, familial etc. —lies in our own hands. And we, as a society of peon employees, have to start putting our energy into treating it that way.
the cynic(08/23/2006)
this is why my husband and I are super-duper anal about the savings account and finding ways to invest our money even though we don't make a ton. Relying on social security and pensions in 40 years just won't be an option.
BPFH(08/23/2006)
Ditto here. I'm doing my damnedest to pay off my student loans and credit cards ASAP (I'm down to about a year on the student loans, and the credit cards will be cleared next February), and once that happens, a LOT of money will be going toward retirement investments. Then, too, my company loyalty is directly proportional to my compensation; after all, if they're not going to be loyal to me, I'm certainly not going to return the favor...
avid reader(08/24/2006)
Thanks for this. This was a kick in the but reminder to do more with regards to my retirement. I've been too dependent on the company. My company matches our contributions with stock in the company. Who knows how many pennies THAT's going to be worth down the line. I plan to cash it out (the stock, that is) when I leave here.
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