Baby boomers are prone to quickly spending down their retirement savings — and they might outlive them, according to a new study.
The findings from the Center for Retirement Research focus on a key difference between the two core types of retirement plans: defined benefit and defined contribution. The former are traditional accounts like pensions or annuities, and they were common among the boomers’ predecessors, who drew down their nest eggs very slowly. Boomers, however, mostly use defined contribution accounts, such as 401(k)s, and already appear to be cashing out much faster.
