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Ronch [10]
3 years ago
11

Economists call pensions "defined benefits" plans, because:

Business
1 answer:
xxMikexx [17]3 years ago
4 0

Answer:

The correct answer is letter "B": pensions have traditionally been set as a fixed nominal dollar amount per year at retirement.

Explanation:

Pensions are retirement plans employees enroll during their working years. There are different types of pensions being the most common the <em>401(k), Individual Retirement Account (IRA), </em>and <em>Roth IRA</em> each one with particular features. What all of them have in common is that they allow retired individuals to receive a fixed stream of income per year after they officially stop working. Therefore, that is the reason why economists call pensions as "<em>defined benefits</em>" plans.

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