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For worse or better? Retirement security through time
Ralph Haberli
Head of Institutional Retirement
Brett Hammond
Research Leader

 


Defined contribution (DC) plans have overtaken defined benefit (DB) plans in the private sector. With that, the responsibility for saving and investing decisions has largely shifted from plan sponsors to participants. Some believe this shift has impaired Americans’ retirement security. But is this the case? And are the benefits of DC underestimated?

Key takeaways:

  • The golden era of retirement when DB plans guaranteed employees lifetime retirement income may not have been as golden as some may think.

  • Progress has been made in the DC space with reforms and initiatives to improve participation and contribution rates.

  • The work continues in DC to ensure expanded access to at-risk populations, allow greater asset portability, improve financial literacy and shore up Social Security.

 


Ralph Haberli is head of institutional retirement at Capital Group. He holds an MBA in finance and accounting from Northwestern University's Kellogg School of Management and a bachelor's degree in history from Yale. 

Brett Hammond is a research leader with 27 years of industry experience as of 12/31/21. He holds a PhD from the Massachusetts Institute of Technology and a bachelor's degree in economics and political science from the University of California, Santa Cruz.

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