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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 4:46PM

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.
Key findings are powered by ChatGPT and based solely off the content from this article. Findings are reviewed by our editorial team. The author and editors take ultimate responsibility for the content.

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