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In the world of private sector pensions, how often have you heard that defined benefit (DB) plans are different from defined contribution (DC) plans? How often is the difference explained by risk acceptance: in a DB scheme the employer bears the risk (of investment losses, mortality improvements etc) and in a DC scheme the employee bears the risk? |
Month: February 2012
Sleepwalking to retirement
Every day, Australians get up, go to work, cope with the stresses and strains, get home, deal with family affairs, pay bills, relax just a bit and then sink into bed as the winds of sleep arrive from the field of dreams. Then they repeat the cycle the next day. How many of those people have any reasonable idea of how they will fund their retirement, where the money will come from, where it will go, how much will they need and how much should they save now towards that funding? Not many.
Australian Actuary 