Traditional Pension Plans

If you still have a traditional pension plan from your employer, count yourself lucky – but don’t get complacent. In 2006, only 33% of employees (in companies with more than 100 employees) have a pension. That’s down 80% from 1985.¹

Many companies have discontinued traditional pension plans in recent years.  In fact,169,000 pension plans ended between 1975 and 2004.²

In place of traditional pensions, many now offer 401(k)s or similar plans that make employees more responsible for retirement preparation. Keep in mind that even if your company still offers a plan, it could change at any time.

Next steps

So what do you do to get ready, whether you have a pension currently or not? Talk with your investment professional to find out. Don't have one? Find out what an investment professional can do for you and learn how to choose one.

^{1 EBRI Databook on Employee Benefits, Chapter 4: “Participation in Employee Benefit Programs” (data from Bureau of Labor Statistics)
2 Pension Benefit Guaranty Corporation, Pension Data Book, 2004}

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