In August, President George W. Bush signed a sweeping pension law. Analysts expect it will lead to the expansion of individual retirement savings plans like 401(k) accounts, and solidify other popular investment vehicles such as 529 college savings plans.
Analysts also predicted the law will open the floodgates for companies to shift workers from traditional pension plans with defined monthly benefits to individual savings plans that may prove less generous for workers, but more predictable for plan sponsors.
For individual investors and workers, the law was noteworthy for its tax provisions encouraging them to save more, in effect replacing the guarantees lost under old pension systems.
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Analysts also predicted the law will open the floodgates for companies to shift workers from traditional pension plans with defined monthly benefits to individual savings plans that may prove less generous for workers, but more predictable for plan sponsors.
For individual investors and workers, the law was noteworthy for its tax provisions encouraging them to save more, in effect replacing the guarantees lost under old pension systems.
Read the story(Getty Images North America)
