To use a football analogy, workers must go long and deep in their defined contribution (DC) plans. In other words, they need to throw more dollars into those plans and for longer periods. That was one of the takeaways from a briefing held yesterday in New York City on retirement trends in the corporate defined contribution plan space sponsored by Prudential.
The discussion focused on how companies can work with plan sponsors and consultants to optimize defined contribution plans and encourage more worker engagement as more companies shift from pensions, or defined benefit (DB) plans, to DC programs. According to a study by Center for Retirement Research at Boston College, of the roughly 50 percent of private sector workers with access to any type of workplace retirement plan, the percentage covered by a DB plan has declined from 83 percent in 1980 to 31 percent in 2008.