Future of Retirement Benefits

Abstract

Defined benefit plans were the main type of retirement plans offered by companies up until the mid 1980s. From the mid 1980s to the present there has been a dramatic increase in the number of defined contribution plans. Companies discovered that defined contribution plans were more beneficial to the company, which resulted in a large number of companies switching the type of retirement plan they offer. This project will explore the reasons why many companies have switched to defined contribution plans and the methods that they have used to switch plans. The switch in plans places more pressure on the employees to invest their money appropriately in order to have sufficient funds for their retirement. This project discusses the pros and cons of these two kinds of retirement plans. This research conducted by M. Muniz.