Tortoise and the Hare: DB vs. DC Pensions 401(k)s are defined contribution (DC) pensions managed by the employees themselves, who tend to select riskier investments to maximize retirement income. Traditional pensions that pay a fixed income after retirement are defined benefit (DB) pensions managed by employers, who tend to choose safer investments to ensure they can meet their obligations. From 2021 to 2026, DC pension assets grew from $9.20 trillion to $12.27 trillion, while DB assets fell from $3.68 trillion to $3.07 trillion. But riskier investments are more exposed to downturns. In the Great Recession, DC pension assets fell 30%, from $3.73 trillion to $2.60 trillion, while the safer investments in DB pensions actually grew 5%, from $2.46 trillion to $2.58 trillion. Check the FRED Blog for all the data