I am scared for my adult children. I am 61 years old, retired for two years. I calculated the value of my defined benefit pension (just over $8,100 a month), using a life expectancy of 25 more years and an interest rate of 4 percent a year. Assuming correct computations, my pension is worth about $2.5 million. (Yes, I understand that lots of “ifs” are involved.)
My children work and save with defined contribution plans. Even considering an employer contribution of 6 percent and pretty decent salaries, how can they ever hope to save enough in future dollars to have a comfortable retirement? A 22-year-old worker has time on his side, but what if he is 40? What should workers be doing? — D.L., by email
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