Posted on May 2, 2013 | Investor Update
A recent episode of the PBS program Frontline focused on 401(k) plans. Entitled “The Retirement Gamble,” the program discussed both the risks and the costs of retirement saving plans.
A 401(k) plan is a defined-contribution plan: employers can choose to contribute a specified amount to the employee’s savings. In contrast, a pension is a defined-benefit plan: employers agree to provide a specified level of income throughout an employee’s retirement.