Economic Report

More companies are freezing their pension plans & many employees are being forced to take 401(k) instead of their defined benefit pension. According to The New York Times, a mid-income earner who expects a retirement income of $53,000 a year with a defined pension, would only get $36,000 from his 401(k) - if his plan was frozen when he was 45. If the trend to freeze or eliminate defined pensions continues, the coming generation of retirees will be poorer and less able to retire at age 65.