As corporate employees lose their pension plans today, they need to protect themselves against facing too much risk in retirement years.
If you are forced to shift from a pension to a 401(k) plan, it is now up to you to manage the risk of underfunding your retirement. When a 401(k) plan fails to perform, you generally don't have any way to make up the shortfall. Often, 401(k) savings won't provide enough savings to last through retirement. That is why financial advisors urge people to sock away additional savings.
As companies freeze pensions and reduce health-care benefits for workers, Baby Boomers are the ones running the risk of market downturns or economic slowdowns.
The question is: What can you do to prepare? The answer is: Find yourself a financial advisor to explore the possibilities of how you will spend your retirement years.