Preparing for retirement has changed dramatically throughout the last several decades. Not only are people living longer due to better health care, costs have dramatically increased all around.
The biggest difference between yesterday’s retiree versus today’s is the diminished defined benefit—or pension—plan replaced by defined contribution plans with ERISA of 1974 establishing the IRA and the Revenue Act of 1978 creating the 401(k). Studies have shown that pensions are and have been rapidly replaced.
