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4 Reasons Why a 401(k) Is Better Than a Pension

Pensions can provide substantial retirement income, but that money is far from risk-free.

By Motley Fool Retirement Team – Updated Nov 26, 2024 at 4:46 PM

Key Points

  • 401(k) plans offer personalized contribution schedules and are not at risk of underfunding like pensions.
  • Investment choices in 401(k)s are flexible, allowing individuals to select options that suit their risk tolerance.
  • 401(k) accounts are portable, ensuring that contributions remain with you, even after changing jobs.
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