What is the difference between the old pensions of yesterday and today's 401(k)'s? Employees understand that pensions are good for guaranteed income and many
Have employer's lost a sense of responsibility to their employees and their communities? Or are we in the midst of a renaissance?
by: Andrea Coombes
Workers understandably fret about the shift from traditional pensions to 401(k)s and similar defined-contribution plans. The investment risk is now almost entirely on their shoulders, as is the responsibility of figuring out how to make their savings last 30 years — or even longer.
But what if it isn’t that complicated?
I recently explored employers’ efforts to address their workers’ retirement income issues. Here, I’ll explore another concept: A strategy for creating lifetime retirement income, developed by the Stanford Center on Longevity in collaboration with the Society of Actuaries, that could appeal to financial planners, employers and do-it-yourself retirement savers.