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Defined Contribution plans have been the trend in the private sector for three decades now and generally are seen as less attractive to pensioners who now hold
by voisin 3y ago
Defined Contribution plans have been the trend in the private sector for three decades now and generally are seen as less attractive to pensioners who now hold all the risk for retirement. Do you have evidence that only DB plans have office real estate exposure?
- nradov 3y agoMost target date mutual funds have some REIT exposure but it's limited and overall they are more broadly diversified than most managed pension funds. The risk with target date funds is very low, and if one worker makes a bad 401(k) investment selection it doesn't impact other workers. So defined contribution plans are more resilient overall and less likely to suffer catastrophic failures.