Variable Benefit Plan

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Dictionary Says

Definition of 'Variable Benefit Plan'

A type of retirement plan in which the payout changes depending on how well the plan's investments perform. Variable benefit plans, also called defined contribution plans, allow the plan holder to manage his or her own account. By contrast, a defined benefit plan provides the plan holder with predetermined payments upon retirement that do not change and which are based on an eligibility formula rather than on investment returns.

Investopedia Says

Investopedia explains 'Variable Benefit Plan'

Variable benefit plans shift investment risk from the employer to the employee. It is possible that the employee will end up with less money from a variable benefit plan if he makes poor investment choices. However, he also has the power to make superior investment choices and end up with better benefits. Therefore, the ability of the employee to make smart investment decisions is critical in variable benefit plans.
Search results for

'Variable Benefit Plan'

  • Variable Annuities: The Do-It-Yourself Pension Plan

    http://www.investopedia.com/articles/retirement/09/variable-annuities-diy-pension-plan.asp
    ... turning to variable annuities as an alternative method of generating predictable,
    guaranteed retirement income. (The Demise Of The Defined-Benefit Plan and Is ...

  • Series 6 Study Guide - Retirement and College Savings Plans ...

    http://www.investopedia.com/exam-guide/finra-series-6/retirement-college-savings-plans/employer-sponsored-retirement-plans.asp
    ... rare today. A defined-benefit plan is designed to provide the employee with
    a fixed monthly income at retirement. The monthly amount ...

  • Variable Annuity Benefits: What The Fine Print Won't Tell You

    http://www.investopedia.com/articles/retirement/07/annuity-benefits-fine-print.asp
    ... riders to make sense, you should plan to hold ... and a guaranteed minimum death benefit -
    are compromised if ... see Getting The Whole Story On Variable Annuities and ...

  • Series 26 Study Guide - Retirement and College Savings Plans ...

    http://www.investopedia.com/exam-guide/series-26/retirement-college-plans/qualified-employer-sponsored.asp
    ... rare today. A defined-benefit plan is designed to provide the employee with
    a fixed monthly income at retirement. The monthly amount ...

  • Series 6 Study Guide - Retirement and College Savings Plans ...

    http://www.investopedia.com/exam-guide/finra-series-6/retirement-college-savings-plans/review-questions.asp
    ... Individual retirement account; Pension and profit-sharing plan;
    Defined-benefit plan. Which of the following determines the amount ...

  • Personal Pensions: Repackaging The Annuity

    http://www.investopedia.com/articles/retirement/06/pensionannuities.asp
    ... (For more information, see The Demise Of The Defined-Benefit Plan.) Annuity Products
    In both the deferred annuity and the variable annuity areas, products have ...

  • Variable Annuities With Living Benefits: Worth The Fees?

    http://www.investopedia.com/articles/retirement/08/variable-annuity.asp
    ... and/or a short life expectancy, a variable annuity - including one with a living
    benefit - may not ... Protected Annuities: Part Of A Solid Financial Plan ...

  • Is Your Defined-Benefit Pension Plan Safe?

    http://www.investopedia.com/articles/retirement/08/safe-db-plan.asp
    ... Understanding Your Plan's Funding A defined-benefit plan is considered adequately
    funded if its ... But perhaps the most important variable in determining a plan's ...

  • Should Your 401(k) Be In An Annuity?

    http://www.investopedia.com/articles/retirement/10/401k-annuity.asp
    ... Plans Cost Detractors of using variable annuity contracts ... the income and death benefit
    riders can provide important protection to plan participants, these ...

  • Introduction To Annuities: Variable Annuities | Investopedia

    http://www.investopedia.com/university/annuities/annuities6.asp
    ... also opted for the 7% guaranteed minimum benefit rider, which ... Use of Variable Annuities
    in Retirement Plans This ... within a tax-deferred retirement plan to begin ...

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