(Bloomberg View) — In a lot of ways, traditional pensions are much better than the so-called defined contribution plans–mostly 401(k)s–that have largely replaced them in the U.S. private sector.

A group pension is less expensive to administer than lots of individual investment accounts. Professional pension managers generally do a better job of investing than individuals with other things on their minds.

Forcing people to save via a pension, while it limits freedom of choice, is a better way of ensuring adequate retirement income than simply offering a tax-advantaged or even employer-subsidized opportunity to save.

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