Defined benefit pensions – which provide people with a lifetime benefit based on a formula that usually takes into account a person’s years of service and salary – used to play an enormous role in providing a safe and secure retirement for many in the middle class. Although coverage has never been universal, pensions have successfully helped millions of people prepare for retirement by providing a secure, guaranteed benefit for life. Pensions are regulated to protect participants against mismanagement, and they shield people from the risk of market downturns and the possibility of living longer than expected. .
