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Index/Topics/Defined-Benefit Pensions

Defined-Benefit Pensions

The benefits and challenges of defined-benefit pension plans

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Jan 8, 2026

What are the common downsides or risks associated with defined benefit pensions (e.g., underfunding, inflation exposure)?

Defined‑benefit (DB) pensions promise a lifetime income backed by employers or funds, but that guarantee masks multiple concentrated risks: funding shortfalls driven by poor investment returns or adve...

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