Corporate Pension Plan Offerings Plummet While Defined Contribution Plans Skyrocket
According to a survey by consulting firm, Towers Watson, the proportion of Fortune 100 companies offering defined benefit plans fell from 67 percent to 17 percent from 1998 to 2010. During that same time, defined contribution plans increased from 10 percent to 58 percent. Companies have been moving towards defined contribution plans such as 401(k)s in order to cut their costs. Unless you have amazing luck investing, the defined contribution plans will deliver less income after you retire compared to the defined benefit plans, which...
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