Retirement 20/20, an initiative sponsored by the Society of Actuaries’ Pension Section, aims to bring together experts interested
in and impacted by retirement issues in order to design a new retirement system from the ground up. In reaction to the shortcomings of
both traditional defined benefit plans and defined contribution plans, Retirement 20/20 seeks to find solutions that meet the economic
and demographic needs for the 21st century in North America.
Learn more about the Retirement 20/20 initiative
Final Winning Papers Available
Congratulations to Ken C. Beckman, Rowland M. Davis, Donald E. Fuerst and Thomas J. Walker.
A total of 18 papers were submitted in response to the Retirement 20/20 call for models to consider ways to reform the retirement system. Most designs were similar to a defined-contribution plan, in that the individual and employer make a contribution into an account each year. But the similarities ended there.
Common themes running through the papers include:
- Focusing retirement accumulations on income provided
- Some designs require or default individuals to take a portion of their benefit as income.
- Preselecting investment mixes
- Building some variability into retirement income.
- Changing the role of the employer.
- More standardization within the system.
- A two-layer system.
- The cost of the plan would be borne by employers and employees.
Download the Final Winning Papers:
The Serious System: A New Model for Retirement Income Success by Ken C. Beckman
The Tracker Plan: A Controlled Risk Defined-Contribution Retirement Program by Rowland M. Davis
Affordable Retirement Income Through Savings and Annuities by Donald E. Fuerst
The Total Career Benchmark Model by Thomas J. Walker
Five Great Takeaways from the Retirement 20/20 Report
Mark Miller, author of The Hard Times Guide to Retirement Security: Practical Strategies for Money, Work and Living, recently touched on five ideas that emerged from the Retirement 20/20 Report.
In his article “How Can We Make 401(k) Plans More Like Pensions?,” Miller outlines ways to improve the current retirement system. By focusing on income and creating incentives for annuitization--just a couple highlights from the Society of Actuaries’ Retirement 20/20 Report--your defined-contribution plans can act more like defined-benefit plans. Read the full article to learn about other great ways to provide more sufficient and dependable income to retirees.