The Crushingly Expensive Mistake Killing Your Retirement

[TexasTowelie]

26. Alas, defined benefit pension plans really aren't a guarantee of a decent retirement.

Last edited Sun Feb 16, 2014, 06:05 PM - Edit history (1)

if the economy is subject to high inflation and no COLA occur with the DB plan. My father retired in 1985 and lived until 2012. He collected a pension check and SS benefits, but gradually his income barely covered his expenses. He was very frugal and had some assets, but if he had to pay for housing as prices inflated rather than locking in a fixed payment on his mortgage, then the situation could have been worse.

Still a defined benefit plan is better than a defined contribution plan which is better than no plan at all. There are going to be so many people struggling later in life that it could lead to instability in our current social structure.