From WSJ: When 401(k) Investing Goes Bad
Seventeen years ago, West Virginia school employees joined millions of workers nationwide in a shift from a pension plan that guaranteed a monthly check, to a retirement-savings plan that would make the teachers, bus drivers, custodians and other staff responsible for their own investment accounts.
Interesting facts from the article:
* The median 401(k) balance for people over 60 and above at the end of 2007 was $34,420, according to Hewitt Associates.
* For teachers in West Virginia the average balance in their defined-contributions plan was $41,478.
* Of the 1.767 employees over the age of 60, only 105 had balances of more than $100,000.
* The state of West Virginia and some private employers are considering returning to a defined-benefits (pension) plan.