Today too many American workers, including the huge cohort of baby boomers who are edging ever closer to retirement, have either no retirement savings or inadequate savings. Some have very few years left in which to save. Only 20 percent of small business workers are covered by a retirement plan. Many workers are not saving enough at a young enough age to fund their retirements adequately. Low wage workers often have the most difficult time setting aside savings.
Many workers have difficulty grappling with investment decisions.
Defined benefit plans offer a solution for many of these problems. But defined benefit plans in small and medium-sized employers have decreased substantially. Millions of small business employees have no employment-based way to provide for their retirement. Only 20 percent of workers in firms with fewer than 100 employees have pension coverage, as opposed to 62 percent of workers in firms with 100 or more employees. Defined Benefit Plan Advantages - Workers Defined benefit plans have many advantages for workers and for employers.