DB plans, because they are annuities, can never be depleted, nor do they ever have to be managed by the worker himself. DB plans are far superior for meeting the needs of average retirees than DC plans, as several studies have shown, because untrained workers do not manage those assets, nor can they make excessive withdrawals. I do not share your faith in defined benefit plans. Since I have a DC plan, I have never really looked into DB plans. But DB plans seem to be chronically underfunded and some large companies have defaulted on their pensions. The people running the DB plans may be professionals, but they share all the same assumptions with the rest of the investment community.Two quick Google results:The problem of public pension underfunding is rapidly becoming the next major administrative nightmare as the over $1 trillion underfunding will at some point have to receive appropriate funding treatment. But public workers are not the only ones who should be very concerned as a result of pension fund underperformance, due in major part to the collapse in capital markets and pension funds' large investments in public equities. http://zerohedge.blogspot.com/2009/03/pension-underfunding-a...From 2005:The United pension default — the largest in U.S. history — comes atop a string of bankruptcies and retirement plan meltdowns in the steel, retail and other industries in the past several years that have directly affected the retirement security of millions of Americans and prompted millions more to worry whether they're next.http://www.usatoday.com/money/perfi/retirement/2005-05-15-pe...
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