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Mark Miller: Remaking Retirement

Seeking Pension Replacement in Retirement

As defined-benefit pensions recede, here are ways investors can build robust guaranteed income streams on their own.

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 Ford Motor Company's (F) ads urge you to "swap your ride," but the auto giant also has a swap in mind for 90,000 former employees: a voluntary buyout of their pensions. Ford is offering lump sum payouts to salaried retirees and former workers--a move aimed at cutting pension liabilities and balance sheet volatility.

The huge buyout offer is just the latest sign that defined-benefit pensions are receding as a retirement solution in the private sector. Although DB plans are still pervasive in public-sector workplaces, just 35% of Fortune 1000 companies still sponsor actively accruing plans, according to Towers Watson.

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Mark Miller does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.