In the News • September 9, 2008
Atlanta Journal-Constitution September 9, 2008 The paper reports that the tough economy and tight credit have pushed more people to rob their future to pay today’s debts. 401(k) plans are being raided with greater frequency to pay medical bills and credit-card debt, avert home foreclosures and other big-ticket problems, and even pay for day-to-day expenses, such as groceries. […]
In the News • September 8, 2008
Workforce Management, September 8, 2008 Jessica Marquez reports that espite the widespread notion that defined-benefit plans are more expensive for employers to manage than defined-contribution plans, a new report finds that might not be the case. The article indicates that in fact, defined-benefit plans can deliver the same benefit at half the cost of defined-contribution plans, according to […]
In the News • August 19, 2008
Chicago Sun-Times, August 19, 2008 A new study found pensions can provide retirement income at 46 percent lower cost than individual accounts, like a 401k. The study released by the National Institute on Retirement Security found that such plans avoid the problem of over-saving and because they are ageless, they can perpetually maintain an optimum balanced investment […]
In the News • August 18, 2008
U.S. News & World Report, August 18, 2008 Emily Brandon writes that a new analysis says 401(k)’s are an inefficient way to finance a secure retirement. The nonprofit National Institute on Retirement Security calculated that a 62-year-old with a final salary of $50,000 would need to have $550,000 in a 401(k) to have an adequate retirement income, determined by […]
In the News • August 15, 2008
Benefits Canada, August 15, 2008 This article reports that defined benefit (DB) plan sponsors looking to save money by switching to defined contribution (DC) plans take note: despite commonly held beliefs, DB plans are capable of delivering retirement benefits at a lower cost than DC plans. The National Institute on Retirement Security’s (NIRS) report, A Better Bang […]
In the News • August 15, 2008
Bureau of National Affairs, August 15, 2008 BNA reports on NIRS latest research, which indicates that defined benefit plans are more cost effective than defined contribution plans because of longevity risk pooling, portfolio diversification, and superior returns. The article indicates that NIRS executive director Beth Almeida calls the report “the first of many that the institute expects to contribute […]
In the News • August 15, 2008
Global Pensions, August 15, 2008 Saving in a defined benefit (DB) pension plan can deliver the same level of retirement income at almost half the cost of a defined contribution (DC) scheme, latest research reveals. A report by the National Institute on Retirement Security (NIRS) found the overall cost to employers and their workers was 46% lower […]
In the News • August 15, 2008
Financial News/Dow Jones, August 15, 2008 Stephanie Baum reports on a new NIRS report that finds defined contribution schemes such as 401-K plans are more expensive for employers to implement even as companies shift toward them and away from defined benefit schemes. The study concludes that the cost for employers to fund the target retirement benefit using a defined benefit […]
In the News • August 14, 2008
Pension and Investments, August 14, 2008 Reporter Drew Carter covers the NIRS report, “A Better Bang for the Buck: The Economic Efficiencies of Defined Benefit Pension Plans.” The article reports that the NIRS study finds that DB plans cost 46% less than defined contribution plans because of better investment performance, lower fees and longevity risk pooling. Beth Almeida, NIRS […]