Defined Benefit Plans Beat 401(k)s By More Than 1%

Defined benefit plans delivered an average return of 10.13% between 1995 and 2007, whereas 401(k) plans rose an average of 9.06% a year, according to a report from consulting firm Towers Watson. While that differential is just over one percentage point, the six largest DB plans analyzed outperformed the six smallest by three percentage points in that timeframe.

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