Early Retirement
Study #248 - Reinventing Retirement Income in America
Traditional defined benefit pension plans, which are managed by employers and which promise workers a specific monthly payment on retirement, are disappearing. Instead, more than 42 million workers now participate in defined contribution retirement plans, primarily 401(k) plans, which specify the annual contributions to an employee's pension fund. A worker's contributions to these plans, the employer's vested match and any interest or dividends reinvested in the plan are the worker's property. Workers are responsible for choosing among investment options, and the account can be moved when the worker changes jobs and can be passed on to heirs.
