The Pension Paradox: Why Retirees Still Need More Than Just a Monthly Check For decades, defined benefit pension plans have been touted as the holy grail of retirement security.
However, beneath this reassuring façade lies a harsh reality: fixed pension payments are woefully inadequate for meeting the rising costs of living in retirement.
Under 3% annual inflation, a pension payment loses 25% of its purchasing power over just a decade. This translates to significant real world expenses that retirees must absorb.