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DB and DC: Complements, not substitutes
Chris Anast
Senior Retirement Strategist
Jay Binstock
Client Solutions Strategist
Naomi Fink
Retirement Economist

 


 

 

As defined contribution plans have slowly gained ground over defined benefit plans, how can the two be used to complement one another? In this series, Capital Group’s team outlines how both plans can be used to hedge their unique risks.

Key takeaways:

  • Defined benefit (DB) plans have slowly given way to defined contribution (DC) plans, although DB still plays a big role in the public sector.

  • DB and DC plans provide distinct opportunities for retirement savings. They may each be used to help insulate against different risks. 

  • Risks involving vesting, fiscal policy and involuntary job separations affect DB and DC participants in different ways.

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Chris Anast is a senior retirement strategist with 25 years of industry experience (as of 12/31/2023). He holds a bachelor's degree in finance from the University of Florida and holds the Chartered Financial Analyst® designation.

Jay Binstock is a client solutions strategist with 13 years of industry experience (as of 12/31/2021). He holds a bachelor’s degree in business administration, finance from the University of Southern California.

Naomi Fink is a retirement economist with 23 years of industry experience (as of 12/31/2021). She holds a master’s degree from Barcelona GSE.

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