The Pension Revolution Is Better for Savers

One of the first things I learned about retirement finance is that there are only three ways to increase income once you stop working:

1. Save more
2. Work longer
3. Take more risk

This is true whether you have a traditional defined benefit plan or a defined contribution plan, such as a 401(k). And yet, the few people running pension funds, savers and much of the financial industry seem unable to accept this hard truth.

Continue reading the entire piece here at Bloomberg (Paywall)

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Allison Schrager is a senior fellow at the Manhattan Institute, a contributing editor of City Journal, and a Bloomberg Opinion columnist.