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Retirement savings crisis (Yahoo link to Motley Fool.)

"....A frightening 57% of working respondents note that excluding their homes and defined-benefit plans (e.g., 401(k) plans), they have less than $25,000 saved for retirement via cash and investments...."

A traditional pension that lasts forever is a defined-benefit animal, yes? A 401k and 403b and stuff of that ilk are defined contribution plans.
http://www.fool.com/retirement/general/2015/04/25/nearly-3-out-of-5-american-workers-have-this-much.aspx

Comments

  • Yes "defined benefit" = pension

    "Defined contribution" = 401k, etc
  • Motley Fool oughta proofread its stuff before sending it out, then...
  • Checked the link again and it looks like they edited the mistake
  • Indeed they did, and they made it worse.

    The EBRI study excludes "the value of their primary home and any defined benefit plans".

    The fool originally suggested that "defined benefit plans" were 401(k) plans and the like. That was a mistaken definition, but at least the text correctly stated that defined benefit plans were excluded. The foolish "correction" was to leave no doubt about the mistake, stating that 401(k) plans (not DB plans) were excluded (wrong) and now calling them "defined savings plans (whatever that is supposed to be).

    Note that pension plans include both defined benefit plans ("traditional" pension plans), and defined contribution plans (401(k)s and the like). See, e.g. http://www.investopedia.com/terms/p/pensionplan.asp
  • This is news??????????????
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