A crisis in America’s retirement system
For many decades, there was an implicit contract between workers and employers: employees who worked hard and were loyal to the company were rewarded with a pension to sustain them in their senior years. But what are known as defined benefit plans have been almost entirely replaced with defined contribution plans, where employees contributes toward their own retirement in an investment account to which the employer also contributes, but on a much smaller scale. That, of course, puts the burden on workers to take control of and largely fund their own retirement, but unfortunately most of today’s workers don’t exercise the discipline needed for a comfortable life in their golden years. And so, America’s retirement system faces a crisis, one which is obvious to the 80% of workers who fear they’ll outlive their retirement savings. This Benefits Pro article by India Suter explains more about the cause and affect of America’s retirement crisis. Click here to read more.
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