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The most common retirement plans for small businesses are Individual Retirement Arrangements (IRAs), defined contribution plans, and defined benefit plans.
Defined contribution plans are going through growing pains, too.
Retirement funds (defined benefit and/or defined contribution) account for just 16percentt of income.
Years ago, companies moved from these defined benefit plans to defined contribution plans like 401 k)s.
Increasingly, however, firms are favouring "defined contribution" schemes.
They have been replaced by money purchase or defined contribution (DC) schemes.
A smattering of companies are serving as a sort of bridge to defined contribution.
The new rules will only apply to people with defined contribution (or money purchase) pensions.
Fifty-seven percent bought their first fund through defined contribution retirement programs, like 401(k) plans.
These defined contribution plans definitely are better for the bottom lines of private sector employers.
She said: "The new FT defined contribution pension plan is among the best offered anywhere.
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