Exactly, those institutions got unaligned incentives as well.

piecover

Bell_curve

There was zero chance defined benefit pensions were going to be managed well. It's just way too easy to over promise and under deliver. Plus, as you note, the incentives are completely perverse.

I would certainly prefer if people were just trusted to manage their own finances, but if we can't have that, at least defined contribution retirements are inherently solvent.

Undisciplined

econ

The Future of Social Security

Same for companies with pensions, especially in blue collar settings. Get the older employees with many years vested to handle any harsh chemicals or make anything else excessively difficult. Any system that doesn't put the individual solely in control of their savings is BS. Institutions cannot be trusted. 