INSIGHT: DEFINED-BENEFIT/DEFINED-CONTRIBUTION HYBRID PENSION PLANS: HELPING RETIREES SUCCEED IN THEIR RETIREMENT GOALS
By Barry Kozak
IDEAS IN THE INSIGHT YOU CAN PUT INTO ACTION
Many individuals have two goals when planning for retirement: (1) an annual fixed income to maintain a desirable lifestyle during retirement, and (2) some wealth left over at death to bequeath to family, friends, and charities. Individuals who participate in an employer’s defined-benefit plan have a greater potential for finding success with the retirement income goal, and individuals who participate in an employer’s defined-contribution plan have a greater potential for finding success with the bequest goal. Yelei Gu, David Kausch, Kristen Moore, and Virginia Young’s article supports the commonsense assumption that individuals who participate in an employer’s hybrid defined-benefit/defined-contribution plan have the best opportunity to succeed at both goals.
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About the Author
Barry Kozak, JD, LLM, MPP, ChFC, RICP, works with individuals and families in aging with dignity, happiness, and purpose; and in healthy financial, physical, and mental aging. He also works with small employers on the design, education, and communication of their employee benefits programs, especially in the areas of financial wellness and retirement. He received his juris doctorate and master of laws in employee benefits law degrees from the John Marshall Law School in Chicago, and his master’s degree from the University of Chicago Harris School of Public Policy.