Q. 1. Why have private pension plans grown so rapidly since the 1940s?
Although the formal introduction of private pension was made a hundred years ago, it is only in 1940 that the private pension industry has emerged as a major social and economic driving factor in the economy. The early pension plans were initiated by large companies between 1900s to 1940 and some of them were implemented through the help of labor unions. However, most of the companies are not in favor of idea, thus making private pension discretionary and, therefore, unfunded and noncontributory. The growth of the industry have doubled covering four million people paying 100% of the premium. The government realized ...
