Tag: 401ks
Introduction Over the past two decades, the private pension system in the United States has shifted from defined benefit to defined contribution plans, and the fastest growing defined contribution plans are 401(k)s. The defining characteristic of 401(k) plans is that employees, rather than employers, bear the investment risk. Currently, many employees hold a significant portion…
Introduction Over the past two decades, private pension coverage has shifted from defined benefit plans to 401(k) plans. This shift has many important implications for the retirement security of older Americans. One so-far-overlooked consequence is that it has changed the relative price of annuities for men and women. Annuities are financial instruments that guarantee retirees…