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Barry: A Narrative Analysis

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Barry, excellent post regarding the distinction and benefit to retirees between defined benefit and defined contribution pension plans. I came across an article that explained why defined contribution are inferior to defined benefit, at least in term of total return to the retiree. According to this article 401(k)’s were not meant to replace pensions. This kind of defined contribution plan was originally created as perk for highly paid executives. Of course, when financial markets are doing great these investment sound pretty good, however, during down market it become terrible for regular employees that are highly dependent on their 401(k) for retirement. According to the West Virginia Education Association, defined benefit pension

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