The time has come for employers to make mandatory contributions to defined-contribution plans. Please do not shoot the messenger: We need to address this reality in order to achieve the retirement outcomes needed for Americans.

As a country, we have effectively eliminated defined-benefit pension plans. According to CNN Money, the percentage of workers in the private sector whose only retirement account is a defined-benefit pension plan is now 4 percent, down from 60 percent in the early 1980s. About 14 percent of companies offer a combination of both defined-benefit pension plans and defined-contribution retirement plans.

At the same time, Fidelity Investments recently reported that the average 401(k) balance reached a record $130,700 in the fourth quarter 2021. While this is wonderful news, that amount will not provide enough supplemental retirement income for employees to maintain their lifestyles when they stop working, after taking into consideration increased living costs and projected life expectancies.