The Investment Company Institute pressed its case against conventional wisdom Monday, releasing data showing that employer-sponsored retirement plans help more Americans today than ever before.
In 2013, it said, one-third of retirees received some retirement income from plan-sponsored assets, either their own or a spouse’s. In 1975, the rate was 21 percent, it said.
Moreover, median retiree income from private-sector plans was about $6,000 in 2013, compared to $4,900 in inflation-adjusted 1975 dollars, it said.
Critics of the employer-sponsored defined contribution model include politicians on both sides of the aisle and a number of think tanks. ICI’s research is meant to challenge the widely held presumption that Americans are less prepared for retirement since the decline of defined benefit plans in favor of defined contribution plans.
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Nick Thornton
Nick Thornton is a financial writer covering retirement and health care issues for BenefitsPRO and ALM Media. He greatly enjoys learning from the vast minds in the legal, academic, advisory and money management communities when covering the retirement space. He's also written on international marketing trends, financial institution risk management, defense and energy issues, the restaurant industry in New York City, surfing, cigars, rum, travel, and fishing. When not writing, he's pushing into some land or water.
