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What I don't get is how on Earth that was ever legal. A defined benefit retirement service must require you to purchase an annuity, so how is it possible to und
by tomjen3 8y ago
What I don't get is how on Earth that was ever legal. A defined benefit retirement service must require you to purchase an annuity, so how is it possible to underfund those retirement founds?
- AnimalMuppet 8y agoYou purchase an investment, but not an annuity - say, some stocks. You make an over-optimistic assumption about how fast that investment is going to grow, because that lets you put less money in this year to fund it. But when the investment doesn't grow as fast as you forecast, you have an underfunded liability.