• In recent years, many defined-benefit retirement funds have been unable to meet their obligations. These failures include both private companies and government funds (even the Ohio State Teachers Retirement fund has had to cut back on the benefits promised to teachers decades ago). There are many reasons, but often these failures are due to the same sort of issues that have caused Social Security to be in trouble (increasing lifespans, poor investment returns, and inadequate funding as future cash needs seem less urgent than current ones).
• What kind of solutions would you recommend for this serious matter?
• Should defined-benefit plans be replaced by defined-contribution plans, thereby avoiding the risk altogether?
