Tuesday, August 25, 2015
Another Lesson from the Stock Market
If you find all of that to be confusing, you have just discovered the key advantage of defined benefit pensions over defined contribution. With defined benefit, you don't have resolve such issues. You don't have to make your retirement dependent on pop advice from the news media. A defined benefit pension, however, doesn't work out so well if you hop from job to job like certain UC presidents, since it is based on - and provides incentive for - a long-term career attachment. Maybe there is a second lesson there somewhere.