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(c) Empirical literature on retirement suggest a replacement ratio of at least 40%. Explain the difficulties encountered by the retirees in both the Defined Benefit

(c) Empirical literature on retirement suggest a replacement ratio of at least 40%. Explain the difficulties encountered by the retirees in both the Defined Benefit Pension Plans and Defined Contribution Pension Plans to deliver an annuity equivalent to 40% of preretirement annual salary.

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