Alert
Close

You could save thousands with the AARP Auto Buying Program. Learn more

Highlights

Open

Introducing RealPad by AARP
You and Your Town Contest-You could win an AARP RealPad
AARP-iPad-ePub-app
AARP Auto Buying Program

Jobs You Might Like

Most POPULAR

Viewed

Research Report

Hybrids and Other Alternatives to the Traditional Pension

This and Related Reports

This PPI research report by Sandy Mackenzie finds that the diminished role of traditional pensions and the dominance of 401(k) plans threaten the retirement security of older Americans. The 401(k) plan encourages improvident behavior by leaving the choice of contribution rate to members, and it provides neither protection from investment risk nor longevity insurance. Alternative pension arrangements can mitigate the 401(k) plan’s shortcomings.

Hybrids like the cash balance plan fix the contribution rate and assign investment risk to plan sponsors, although they provide no longevity insurance. Two relatively new financial products, add-ons to 401(k) plans—one with a minimum guarantee and one that annuitizes contributions as they occur—give 401(k) plans some of the features of traditional pensions and do provide some longevity insurance. Measures to reduce unnecessary obstacles to annuitization of retirement plans would also help compensate for the decline in the availability of longevity insurance.

Topic Alerts

You can get weekly email alerts on the topics below. Just click “Follow.”

Manage Alerts

Processing

Please wait...

progress bar, please wait

Tell Us WhatYou Think

Please leave your comment below.

Jobs You Might Like

Discounts & Benefits

From companies that meet the high standards of service and quality set by AARP.

UPS Store membership discount aarp benefits

Members save 15% on eligible products/services, 5% on UPS shipping at The UPS Store®.

membership adt

Small business owners save 20% on new installation of any new ADT security system.

Mujer en la parte de afuera de so negocio

Free quotes for members from the AARP® Small Business Insurance Program.

Member Benefits

Renew today! Members receive exclusive member benefits & affect social change.

Rewards for Good

Your Points Balance:

Learn More

Earn points for completing free online activities designed to enrich your life.

Find more ways to earn points

Redeem your points to save on merchandise, travel, and more.

Find more ways to redeem points

Explore Your Learning Possiblities