US pension plans are disappearing but there are alternatives

Over the past few decades, a significant shift has occurred in the landscape of retirement planning in the United States. The traditional “defined benefit” retirement plans, commonly known as pension plans, have become increasingly rare. These plans provided retirees with a guaranteed benefit, typically in the form of a fixed monthly or yearly payment. In their place, “defined contribution” plans, such as 401(k) plans, have become the norm. These plans focus on specified contributions, with the eventual retirement benefits depending largely on the performance of the investments made with those contributions. The current state...