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US Economy

Shift from Pensions to 401(k)s: Examining the Reasons and Implications

Pensions have almost disappeared as companies now favor 401(k)s. As a tactic to retain workers, firms used to provide their employees with a defined-benefit (DB) retirement plan or a defined-contribution (DC) plan. However, many companies have moved away from pension plans in lieu of DC plans over the past 30 years. Even though some workers still…