Stick a fork in them they are done- they are another thing that was never thought through many years ago. How do you pay for current now, with a promise of money down the road as well? Then down the road actually have the money to pay for it? You end paying the “new” employees more, the old employees more, and as your business/entity “succeeds”- you get stuck with a growing pile of labor benefits for people who no longer even produce a single thing for you. That ‘success” is not success at all; it is a recipe for non-competitiveness. It needs to go away quickly as a piece of reworking the social and financial fabric that is today’s America.
Idea- Educate all high school students on the time value of money. Incentivize all Americans to get into 401K’s much earlier than they do. Drop the entry age from 21 to 16 years old. Why not? This only promotes savings earlier, allows them to lower their tax burden, and starts engraining best practices at an early age. The upside is huge and there isn’t a downside.
Idea- STOP paying overtime- period. Why would you consciously under-employ, pay overtime(by design) which is a waste of money, use that as part of pension calculations, and then be on the hook for even more money that you don’t have. The goal should be to HIRE PEOPLE, lower overtime to zero, pay fairly and within budget, lessen the cost burden of waste, and to get away from pensions and move to a 401K with matching situation.
Idea- Raise the annual amount both in percent and real dollars that one can contribute to 401Ks. Why not? You get social security tax now anyway, you maximize bank capitalization which allows them to loan, you build an inherent umbrella of safety for all who participate faster and confidence goes up. So again, why not?
Side note- Just a thought- we need to revisit the 20 year retirement time frame for things like military and police. That quicker turn around loses veterans, costs additional benefits for life longer, and hasn’t been adjusted for the longer mortality rate we all now enjoy. If people live longer and moneys are now being spent additional on the back end- isn’t it worth talking about moving the retirement time frame from 20 to 25 years (as an example).