Chad Parks, CEO + Founder of Ubiquity Retirement + Savings, spoke to Employee Benefit News, about State-run retirement, pensions. America needs to redefine what retirement means — turning 65, collecting a pension and enjoying the golden years isn’t realistic anymore. Unfortunately, we’re stuck in the past, and the retirement system has yet to respond to the current situation, he says. “It’s a human behavior problem,” Parks says.
The public pension system is a ticking time bomb,” says Chad Parks. As a business owner, Parks sees both sides of the issue. Defined benefit plans can be bad for business, he says, but Parks is an advocate for pensions due to the “unintended consequences” of defined contribution plans. A 401(k) was meant to augment a pension plan, not replace it, he says. Today, individuals must manage their own financial future, which is a mistake, Parks says.