<P> In a defined contribution plan , investment risk and investment rewards are assumed by each individual / employee / retiree and not by the sponsor / employer . This risk could be substantial . Based on simulations from security returns over the twentieth century across 16 countries , there is considerable variation in retirement plan fund ratios across both time and country . Those countries keenest on individual DC accounts have the highest retirement plan fund ratios but all investors in all countries face considerable downside risk . </P>
<P> In a defined contribution plan , investment risk and investment rewards are assumed by each individual / employee / retiree and not by the sponsor / employer . This risk could be substantial . Based on simulations from security returns over the twentieth century across 16 countries , there is considerable variation in retirement plan fund ratios across both time and country . Those countries keenest on individual DC accounts have the highest retirement plan fund ratios but all investors in all countries face considerable downside risk . </P>
who bears the investment risk in a defined contribution plan
who bears the investment risk in a defined contribution plan
each individual / employee / retiree
each individual / employee / retiree