Defined Contribution Plans as a Foundation for Retirement Security

Research output: Contribution to journalArticle

Abstract

This article discusses why employer-sponsored defined-contribution (DC) plans and individual retirement accounts (IRAs) are such an important part of the U.S. retirement system. The authors discuss the numerous positive strides taken by plan sponsors to increase participation, provide more diversified portfolios, and offer immediate eligibility to a mobile workforce. They argue that the DC system provides a strong foundation upon which to continue to strengthen the U.S. retirement system and is preferable to alternative proposals that seek to wholly or partially supplant the employer’s role with expanded government provision of retirement benefits. The authors recommend that policymakers and the employer community work together to build on the substantial progress already made regarding coverage, participation, and contributions as well as in the promotion of guaranteed retirement income and other retirement risk management practices.
Original languageEnglish (US)
Pages (from-to)22-45
JournalThe Journal of Retirement
Volume1
Issue number4
DOIs
StatePublished - Apr 30 2014

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