In a report published in December, 2015 the Center for Retirement Research studied defined benefit versus defined contribution pension plans from 1990-2012 and concluded that DB plans out-performed 401(k) plans by 0.7 % in investment returns. The report also cited data indicating returns for traditional IRAs were about 1% lower than the 401(k)s. Investment fees were tagged as the main culprit lowering returns. In the conclusion, the report says: “Forgoing returns over long time periods means that assets at retirement will be sharply reduced…” http://crr.bc.edu/wp-content/uploads/2015/12/IB_15-21.pdf
