I have called the pension plan, what few are left, the great economic stabilizer. Unlike defined contribution plans such as 401(k)s, pensions offer a set amount of future dollars for the participants in the plan regardless of how well or poorly the markets do.
These plans are not without risk. They can be under funded or the underlying investments in the pension can do poorly. But as long as your pension payment is not too excessive, the payment is guaranteed up to a certain percentage of the originally promised amount.
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