Dan Kravitz, head of Kravitz, reviews data from the 2018 Kravitz Cash Balance Research Report in a recent Index Fund Advisors feature. Employer contributions to these specialized plans increased by 30% year-over-year, while total Cash Balance assets exceeded $1 trillion for the second year straight. “From the data we monitor, traditional pension plans are definitely in a state of decline—the costs of maintaining these as primary retirement savings programs have just gotten too expensive for most companies to afford,” says Kravitz. He also discusses how these plans enable savers to contribute over-and-above traditional 401(k) limits, making them attractive to business owners and their employees alike.
