Summary
Having
access to an employment-based retirement plan is one of the most
significant factors in individuals’ likelihood of having a financially
secure retirement. However, recent retirees and those currently reaching
retirement face different challenges than private-sector workers who
retired years before. This is due to a decrease in defined benefit (DB)
plans being offered by private-sector employers and a corresponding
increase in defined contribution (DC) plan offerings. The result is that
future retirees will have greater responsibility for managing their
retirement plan assets throughout retirement. In this Fast Fact, the extent of this movement of participants from DB plans to DC plans is shown for private-sector workers.