Retirement Plans and Pension Laws

The video discusses the evolution of pension systems, starting with the traditional employer-funded pensions that were professionally managed and provided lifetime benefits. It highlights the significant changes in federal pension laws around 40 years ago, which made traditional pensions less attractive to employers and coincided with a decrease in worker power. In 2024, while half of the people are covered by retirement plans, the majority rely on 401k plans.

What was the main feature of the traditional pension system?

• Employees could access the money anytime.

• The money was pooled and professionally invested.

• Employers invested the money personally.

• It was based on employee contributions only.

What significant change occurred in pension laws about 40 years ago?

• Traditional pensions became less attractive to employers.

• Worker power increased significantly.

• 401k plans were abolished.

• Pensions became more attractive to employers.

How did the change in pension laws affect worker power?

• Worker power increased.

• Worker power remained the same.

• Worker power decreased.

• Worker power was unaffected by pension laws.

As of 2024, what percentage of people are covered by a retirement plan?

• 25%

• 100%

• 50%

• 75%

What is the most common type of retirement plan in 2024?

• Individual Retirement Accounts (IRAs)

• Traditional pension plans

• Social Security

• 401k plans