Will Definted Benefit Pension still be around when I retire?

I am 20 years old and I plan on making a career with the Police. I know social security would be gone when I retire, but would it be realistic for me to look foward to be paid a retirement check when I finish serving 25 years? Or do I have to look out for myself? As more people continue to retire and living longer, the government and companies that offers DB or DC plans will be their biggest liability. Do you think they will cut out retirement benefits forever in the future?

Public Comments

1. Defined contribution plans can always define a smaller contribution, so I think these will survive a long time. Defined benefit plans become more and more costly. I think they will be extinct in 50 years.
2. Defined benefit will definitely be gone, because it can't give out promised amounts for that many people for a long time. But defined contribution pensions will stay because the pension is based on your part of the pot at retirement and an annuity is bought that pays you your pension, the amount is figured at retirement.
3. pension programs are dissapearring and 401k's are becoming popular whether you get a pension depends on the company you work for. If you work for a company that offers a pension usually there is a minimum number of years to work for a company to be eligible for the pension such as 5. once you hit this you are gauranteed your pension if the employer defualts the pension is insured by th government. so if you work for a company that has a pension of 100 per year of service if you work for the company for 30 years your monthly pension payment will be 30 x 100 = 3000. whether or not you receive a pension it is still important to invest money in a 401k or ira and the sooner you start the better.
4. Government-backed plans, like social security, will still be here and paying out because the government can just raise taxes to pay for it. Many local police department's pension plans are run by the state and thus are of low risk of default. A plan run by local or county government may have a high risk. Be that as it may, it would be wise for you, and most everyone else, to plan for your own retirement, just in case. Be sure to fully fund any 401K type plan offered to you or setup your own IRA. If you put between 10% to 15% of your earnings into these starting at age 20 you will have a very nice retirement life. The worst that will likely happen if you have saved too much is that you might decide to retire early. I've known of many people that have saved a lot and retired in their early 50s.