Danielle Reed

For once, it’s the whippersnappers who are behaving more wisely. At least when it comes to saving, Generation X and Generation Y workers are more diligent than their peers.

Traditionally, 401(k) investment menus have consisted of core asset classes such as U.S. stocks and investment-grade bonds. However, defined benefit plans have relied on a much broader range of asset classes and have historically outperformed defined contribution plans, says Bill McDermott, head of defined contribution services at Goldman Sachs Asset Management.