Pension Plan

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Dictionary Says

Definition of 'Pension Plan'

A type of retirement plan, usually tax exempt, wherein an employer makes contributions toward a pool of funds set aside for an employee's future benefit. The pool of funds is then invested on the employee's behalf, allowing the employee to receive benefits upon retirement.
Investopedia Says

Investopedia explains 'Pension Plan'

In many ways, a pension plan is a method in which an employee transfers part of his or her current income stream toward retirement income. There are two main types of pension plans: defined-benefit plans and defined-contribution plans.

In a defined-benefit plan, the employer guarantees that the employee will receive a definite amount of benefit upon retirement, regardless of the performance of the underlying investment pool.

In a defined-contribution plan the employer makes predefined contributions for the employee, but the final amount of benefit received by the employee depends on the investment's performance.

Articles Of Interest

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    Keeping Track Of Retirement Plan Assets

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  2. Overcome The Retirement "Gender Gap"

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  3. Will Your Retirement Income Be Enough?

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  4. Preparing To Tap Into Retirement Income

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  5. 10 Simple Steps To Financial Security Before 30

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  7. 5 Tax(ing) Retirement Mistakes

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  8. Can You Retire In Five Years?

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  9. Pension Plans: Pain Or Pleasure?

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  10. Journey Through The 6 Stages Of Retirement

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