Dan Kravitz Discusses Growth in Cash Balance Market

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.