who bears the investment risk in a defined contribution plan
Defined contribution plan In a defined contribution plan, investment risk and investment rewards are assumed by each individual/employee/retiree and not by the sponsor/employer. This risk could be substantial. Based on simulations from security returns over the twentieth century across 16 countries, there is considerable variation in retirement plan fund ratios across both time and country. Those countries keenest on individual DC accounts have the highest retirement plan fund ratios but all investors in all countries face considerable downside risk.
Social control theory Travis Hirschi adopted Toby's concept of an investment in conventionality or "stake in conformity". He stressed the rationality in the decision whether to engage in crime and argued that a person was less likely to choose crime if they had strong social bonds.