Thomson ReutersMay 22, 2013 14:02
By Linda Stern
WASHINGTON (Reuters) - Pension funds - those old guaranteed-benefit retirement plans your grandma might have told you about - outperform those in 401(k) plans year after year, according to new research from consulting company Towers Watson.
In 2011, the last year studied, defined-benefit plans had median returns of 2.74 percent, while 401(k)s and other defined-contribution plans lost 0.22 percent. It was the widest margin since the mid-1990s, the company said.