Thursday, January 24, 2013

Worth Noting

A post on Market Size Blog today (link)—the subject is the total money held in IRAs—is worth noting. Straws in the wind? More like bales of straw in the wind:

The sort of pension plans that used to be regularly offered by large companies—a plan in which an employee was promised a defined monthly payout after retirement—are fast disappearing in favor of hybrid plans that offer employees a framework into which they may invest for their own retirements, thus 401(k) and other similar plans. To illustrate the speed of change in this field, a glimpse at the coverage offered by the largest of firms, those most likely to offer a traditional pension plan. In 1998, 90% of the companies in the Fortune 100 provided their new employees with a traditional pension. In 2012, that number had fallen to 30%.

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