Throughout much of the recent recession, increasing numbers of American employers were forced to impose freezes on their traditional pension plans while waiting for the economic storms to die down. While most companies in America today have long since foregone the pension plan, instead opting for 401(k) or similar defined-contribution plans which rely on stock-market gains, some still do manage their employees retirement savings the old fashioned way. These are usually large corporations that can still afford to take such care and to invest in their stakeholders. For smaller to mid-sized businesses, this is a luxury that they cannot afford.
In fact, only the biggest and most successful mid-to-large sized companies are even able to offer 401k and other plans like it at this time, leaving most Americans to fend for themselves when it comes to saving for retirement. This, along with shaky stock market performance over the last decade, has contributed to a sense of insecurity about retirement savings, and many people do not feel prepared to retire. Let’s look at some facts in this infographic:
