I like when people state the obvious, but the concept is way over their head.

The National Institute on Retirement Security did a study that states that a typically defined benefit plan has a 49 percent cost advantage compared to a typical individually directed defined contribution plan because of longevity risk pooling, asset allocation, low fees, and professional management.

Anyone with experience in the 401(k) space would know that trustee-directed invested plans with an annual valuation will always be cheaper than a daily valued 401(k) plan of the same size.

However, ask companies why they ditch pension plans. It’s not because of fees, it’s because the burden of funding contributions is almost entirely on the employer. Employers shifted to 401(k) plans to save money on employer contributions and that’s a fact that kind of pores water over this study.