Defined benefit (DB) retirement plans haven’t quite reached “dead as a dodo” stage, but the trend line is obvious. Private-sector DB plans have largely disappeared, with most of the remaining plans being frozen or closed to new entrants. Public-sector defined benefit plans remain more common but face funding challenges, leading to benefit adjustments and hybrid plan structures.

This means that those entering the workforce today likely won’t have a choice for their corporate-sponsored retirement fund. It will be a defined contribution (DC) plan or nothing.

Many investors, however, are leery. They like the idea that with careful investing, they can earn more than they would on a defined benefit plan, but they wonder what happens if their saving and investing isn’t enough. Retirees need stable, consistent cash returns for several years — sometimes decades. How can DC plans be configured to achieve this goal?

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