Salinas, CA Employers Continue To Shift Away From Defined Benefit Pension Plans : View From An In Home Private Duty Caregiver Serving Seniors In Carmel, Carmel Valley, Gonzalez, Greenfield, King City, Marina, Monterey, Pacific Grove, Pebble

The prospect of very low interest rates continuing for some time paired with extreme turbulence in the international markets has many pension fund managers lowering their return on investment targets.  That and the fact that many retirees are living much longer than plan administrators had expected has many fearful we may face another pension shortfall in the future.  Adding to the fears are a 52% increase in the regulatory administrative costs which could add $20 billion in costs over the life of current pension plans, according to Morgan Stanley.  Expect a continued shift to 401K plans with lower employer matches as companies switch away from defined benefit plans.  In 1979, 38% of private sector employees were covered by these plans.  This had fallen to 14% by 2011, according to the Employment Benefit Research Institute.