As we move from defined-benefit pension plans (or what I call Industrial-Age retirement plans) to defined-contribution pension plan (or Information-Age pension plans), the result is that you, as an individual, must now be financially responsible for yourself.
“Defined contribution” means that you only get back what you and the company have contributed while you were working. In other words, your pension is defined solely by what has been contributed.
The good news is that, in the Information Age, life expectancy has increased. The bad news is that you might outlive your pension (if you even have one).
Today we all need to be concerned with more that just job security. I think we must also focus on our long-term financial security and not leave that responsibility to a company or the government.
Today, we all need to become wiser investors, always aware of the ups and downs of the financial market. I recommend learning to be an investor rather than giving your money to somebody else to invest for you.
Robert T. Kiyosaki
- ‘Declining Wealth Brings a Rising Retirement Risk’ (economistsview.typepad.com)
- Why Gen X And Late Boomers Aren’t On Track For Retirement (mamblahg.wordpress.com)