>That DB pension still has interest rate risk over a period of decades.
That's the employer's problem, not the pensioner's. Again, the large corporation that can afford to manage the risk is forced to, rather than the individual retiree.
>But maybe you just prefer effectively being forced to save at a low-risk rate which is what a DB pension is.
No, it's an effective guarantee of the benefits I'll receive upon retirement. I don't invest in anything as part of the pension.
Now, I'll agree that some individuals would long-term beat the 6% that the pension fund will get (presumably with higher risk).
But for the entire employee base to each individually beat it seems very unlikely to me. Even to collectively beat it and accept that some unlucky duckies will eat dog food when they retire, I think is not very likely.
That's the employer's problem, not the pensioner's. Again, the large corporation that can afford to manage the risk is forced to, rather than the individual retiree.
>But maybe you just prefer effectively being forced to save at a low-risk rate which is what a DB pension is.
No, it's an effective guarantee of the benefits I'll receive upon retirement. I don't invest in anything as part of the pension.
Now, I'll agree that some individuals would long-term beat the 6% that the pension fund will get (presumably with higher risk).
But for the entire employee base to each individually beat it seems very unlikely to me. Even to collectively beat it and accept that some unlucky duckies will eat dog food when they retire, I think is not very likely.