Dinosaurs Are Extinct. Pensions Are Alive And Well.

Kids love dinosaurs. These larger-than-life, amazing creatures that existed some 66 million years ago continue to fascinate both children and adults. Just think about how dinosaurs are still prevalent in modern popular culture – the blockbuster Jurassic Park franchise, Toy Story’s sweet Rex, and beloved Barney. Not to mention the myriad dinosaur exhibits that remain highly popular attractions at science and natural history museums around the world.

Sometimes, we hear defined benefit (DB) pensions compared to dinosaurs. Like dinosaurs, pension plans are fascinating, large, and strong. They are a reliable source of retirement income and remain extremely popular among workers today. But unlike dinosaurs, pensions are not extinct. In fact, pension plans are alive and well today, paying benefits to 25 million people, holding $11.8 trillion in plan assets, and more than $600 billion in benefits paid annually to support seniors. About 90 percent of the state and local workforce has a pension plan. While pensions are less common among private sector workers than they were 50 years ago, we’re starting to see a reevaluation of these corporate retirement plans that workers like and value.