Defined Contribution Plan

A defined contribution plan (DC) is a pension plan such as a 401(k) where the plan participant such as an employee assumes responsibility for directing plan assets among various investment options. In contrast to a defined benefit plan, the participant assumes market risk under a defined contribution plan. In addition, the participant assumes responsibility for converting accumulated assets into a stream of income when they retire. In other words, assets need to accumulate during working years and then the participant is responsible for figuring out what to do with that sum of money when they retire. The number of defined contribution plans has increased significantly over the past 20 years.

Most Retirees and Near Retirees "Consumed by Fear"

A recent article in Bloomberg discusses the financial challenges faced by most retirees in the United States and the steps that the Obama Administration is taking to address the crisis. The demise of defined benefit pension plans over the past thirty years correlates almost perfectly with the rise of defined contribution plans such as 401ks.

Achaean Financial is Proving Innovation is Alive and Well in the Annuity Business

Lorry Stensrud, a seasoned executive turned entrepreneur, is on the leading-edge of retirement income product development with his new Venture Achaean Financial.

Achaean’s Income Plus+ product provides a relatively high level of guaranteed starting income while maintaining both...

Anna Rappaport on Annuities and Planning for the Long Term

Anna Rappaport is widely recognized as a leading expert on retirement systems, workforce issues, the impact of changing demographics and women’s...

Too Many Choices

8,000+ mutual fund choices available.

For every ten mutual funds an employer offers in defined contribution plans, the rate of participation goes down 2 percent.

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