The shift from guaranteed pensions to market-based plans transfers all financial risk to employees
The transition from traditional pensions to market-based plans represents a massive shift in financial responsibility, placing the entire burden of investment risk and longevity on the individual employee.
Historically, defined-benefit pensions guaranteed a fixed payout for life, but modern 'defined-contribution' plans have changed the landscape of retirement. In this new model, the employee bears all the risk of market volatility.
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