Defined contribution pension plans
In a defined contribution pension plan, the amount of the contributions is set in advance. The amount of the eventual retirement income is not set in advance.
A member's retirement income will depend on several factors, including the total amount accumulated in his or her account:
- the member's contributions, if any
- the employer's contributions
- sums transferred to the member's account, if any
- interest earned
Everything you need to know about this type of plan...