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10 Don’t Make Me Say I Told You So

With longer life expectancies, companies no longer want the
obligation to pay benefits to retirees for 20, 30, or even 40 years.

In other words, it’s like being told, “Here is your pension in a
lump-sum, now create your own lifetime income with it.”

Frozen Out

Many other companies are freezing their pension plans. This

means that the plan is not available to new employees, and the
company will stop making contributions for specific workers.

As an example, a company will make a plan unavailable for
new employees, and stop contributions for employees under

45 years of age. The trend toward freezing pension plans is
accelerating in the U.S. as corporations try to cut obligations to

retired employees.

Chapter 1: The New Retirement