What Will DC Plans Look Like in 2025?

“In a post-defined benefit (DB) world, defined contribution (DC) plans – historically only used to supplement a monthly pension – have largely failed to prepare U.S. workers for retirement. This leaves those who rely on Social Security as their primary benefit and only source of guaranteed income vulnerable and may also adversely impact employers. Delayed retirement creates workforce management issues because employees facing financial stress often come to the workplace in poor health, may be disengaged and are blocking younger workers from advancing. One recent survey shows 93%¹ of plan sponsors agree that they should be responsible for the retirement preparedness of their employees, which may be an indication that employers are beginning to understand their exposure to this issue.” Continue reading.

Source: Russell Investments