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Senior woman grocery shopping

Abstract Although health and employment shocks are fairly common at older ages and often derail retirement savings plans, Social Security’s disability insurance, spouse and survivor benefits, and progressive benefit formula may provide important protections.  By contrast, traditional employer-sponsored pension benefits may be especially vulnerable to health and employment shocks immediately before benefit take-up, because pension…

Female crossing guard leads children safely across street

Introduction While 401(k) plans now dominate the private sector, defined benefit plans remain the norm among state and local governments.  Why have public sector employers not shifted from defined benefit plans to 401(k)s like their private sector counterparts? This brief examines the unique factors affecting the two sectors that may explain their very different patterns…