On: Champions of the 401(k) Lament the Revolution They Started

[smallnamespace]

I doubt that would ever happen -- people take property rights very seriously here, and 401k money is very clearly the fruit of the owner's labor.

The easier way to move money from savers to debtors is to cause inflation, but good luck getting that to happen in today's environment.

[koolba → smallnamespace]

You could say the same thing about social security too though I don't think I'll get back >= 100% of what I put in. Between "means testing" (which is stupid because it disincentives saving) and raising the retirement age for non-boomers, it's not looking probable so don't consider your 401k untouchable either.

[smallnamespace → koolba]

Difference is that SS doesn't have a number that says 'this amount is your exact share of the pot', while your 401(k) does.

How a thing is originally presented matters, especially when it comes to what is politically possible.

[crdoconnor → koolba]

>You could say the same thing about social security too though I don't think I'll get back >= 100% of what I put in.

You rarely get back your insurance premiums either.

It's called social security for a reason.

[koolba → crdoconnor]

When I started paying into social security they promised me retirement at 65. If an insurance company changed the terms of my payout after collecting years of premiums, they'd have a fun lawsuit to defend.

[dragonwriter → koolba]

> If an insurance company changed the terms of my payout after collecting years of premiums, they'd have a fun lawsuit to defend.

Unless there was a bankruptcy involved. Which, you know, happens to insurance companies.

[smallnamespace → dragonwriter]

Insurance company policies are backstopped by state and federal government guarantees (with amount limits).

[dragonwriter → smallnamespace]

For the most part, they are backstopped by state-mandated-private guarantors (who in principle also have a bankruptcy risk), but not federal guarantees, and with fairly low limits (and sometimes at less than full value even before the limit, e.g., life insurance products on CA are at 80% up to either a $100K, $250K, or $300K limit, depending on the type of product.)

[crdoconnor → koolba]

The sales pitch/excuse they used to justify breaking this promise is the exact same one you used: "it's not sustainable".

Plays better than "this was just our decision", I suppose.