According to a new Willis Towers Watson report defined contribution plans (DC) now represent almost 60% of the retirement savings plans in the US.
According to an article in Chief Investment Officer magazine, Willis Towers Watson’s 2016 Global Pension Assets Study found that DC savings increased in share from 39.9% in 2005 to 48.4% in 2015—growing at more than double the rate of defined benefit (DB) assets.
Increasingly workers are finding that a defined benefit (DB) pension are becoming a safety net of the past, and are now being enrolled in defined contribution plans at an increasing rate. With the adoption of the the defined contribution plan as the default retirement savings vehicle, the worker is now responsible for the investment of their funds and ultimately the outcome for their own retirement.