Defined benefit plans better prepare workers for retirementthrough higher returns than defined contribution plans, accordingto a brief from the Center for Retirement Research atBoston College.
The brief compared returns by plan type from 1990 through 2012,using data from the U.S. Department of Labor’s Form 5500.
During that period, it said, DB plans “outperformed401(k)s by an average of 0.7 percentper year, even after controlling for plan size and assetallocation.”
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