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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.

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