Answers with Explanations:
1. What does she mean by this?
Sonia probably meant that the pension and 401(k) are the best retirement options because it gives the person money that is literally "free." She never considered that these plans are not really for free but are intended to fund their retirement.
2. Does she have a good point? Why or why not?
Basically, the pension and 401(k) are "not free money." So, I guess Sonia doesn't have a good point on that. The pension (occupational pension) and 401(k) are "defined-benefit plans" and "defined-contributions plans" which are deferred from tax.
This means that the person can contribute an amount of money to those plans and they can be withdrawn tax-free after retirement. This is basically, a form of savings plan for the person so it is not literally for "free."
Answer:
In some cases the employer will match your contributions or at least a percentage of it therefore giving you "free money" through these programs.
Explanation:
