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Future Retirement Income Security Needs Defined Benefit Pensions

Date Published: 
Friday, May 19, 2006
Center for American Progress (March 2006)

The retirement landscape is characterized by three major problems, which can be better addressed by well regulated DB plans than by defined contribution (DC) plans. For one, many private sector employees are not covered by a pension plan. Second, retirement wealth creation has proceeded rather unequally, leaving many low and moderate income families with too few savings. And third, increasingly families are exposed to more and more risks when saving for retirement, which can mean that they will not have the retirement income that they expected.