Cindy is nearing retirement and has worked at a private company for many years. Which employer-sponsored retirement plan would ensure a stable income for Cindy during retirement and why?

A traditional pension is a defined-benefit plan: it promises a regular monthly payment in retirement, often based on salary and years of service. That predictable income is what Cindy is seeking. A 401(k), by contrast, depends on contributions and investment performance and does not guarantee a particular monthly retirement income.

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