Over the last 20 years, pension coverage has shifted from defined benefit plans, where benefits are based on years of service and final salary and generally paid as an annuity, to 401(k) plans, where individual and employer contributions and earnings on those contributions are awarded as a lump...

Over the past two decades, coverage under employer-sponsored pension plans has shifted from traditional defined benefit to 401(k)-type defined contribution formats. This shift has many important implications for retirement security. This brief examines the differential impact of the transition...