Workers with defined-contribution plans, such as 401(k)s and IRAs, know that the value of their retirement savings can fluctuate with the ups and downs of the economy. The markets tend to grow savings in the long run, but nothing is certain.<\/p>\n
In comparison, those with defined-benefit plans \u2013 pensions \u2013 tend to feel a lot more secure about their post-retirement income, and with good reason: pensions are reliable. Private pensions are insured by the Pension Benefit Guaranty Corporation, an independent government agency, and government pensions are considered rock-solid.<\/p>\n
The city of Detroit’s recent bankruptcy filing, however, might give those government pensioners and future pensioners pause. Pensions represent a huge and growing share of the city’s expenses that contributes significantly to its dire financial straits. If Detroit’s bankruptcy is allowed to continue \u2013 it is currently held up in court \u2013 it may very well mean that pension promises are broken and retirees’ benefits (more…)<\/span><\/a><\/p>\n","protected":false},"excerpt":{"rendered":" Workers with defined-contribution plans, such as 401(k)s and IRAs, know that the value of their retirement savings can fluctuate with the ups and downs of the economy. The markets tend to grow savings in the long run, but nothing is…<\/span><\/p>\n