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In 1990, 43 percent of private sector employees were covered by some kind of pension plan. Today, traditional pensions in the private sector are becoming a thing of the past. Most Americans have a defined contribution plan, like a 401(k), to save for retirement. According to 2011 data from the Employee Benefits Research Institute, just seven percent of employee participants in a retirement plan at work had a defined benefit plan only.

In the mid-20th century, pensions were standard for retired employees across both the private and public sectors. But by the late 80s, fewer and fewer companies were offering defined benefit plans, which guarantees a payment based on earning history over the course of an individual's retirement. Defined contribution plans, like 401(k)s, became more common. 

Young people entering the workforce today aren't expecting a pension to pay out the rest of their lives, but people who entered the job market 40 years ago are. What happens if a check you thought you could count on for the rest of your life isn't there? 

Olivia Mitchell, executive director of the Pension Research Council at the Wharton School of Business, joins The Takeaway for a look back at the history of private pension funds in the U.S. 

This segment is hosted by Todd Zwillich.