Disadvantages of Defined Contribution Plans

Reported about 1 month ago

Defined contribution plans, such as 401(k)s, may not offer sufficient retirement security compared to traditional pension plans, especially as people live longer. Experts argue that insufficient savings can lead to a risk of running out of money in retirement, with early poor market returns posing a threat to financial stability. Unlike defined contribution plans, pensions provide predictable income, crucial for long-term financial security.

Source: YAHOO

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