Pension Plans Are Disappearing. Now What? Defined Ben... - Ticker Tape
Pensions are a type of “defined benefit” plan. Typically, you’d pay into it (or technically your employer would pay into it on your behalf) during your working years, and once you retired, you’d have a guaranteed income stream for life...“Defined contribution” plans like 401(k)s encourage employees to save on their own while offering tax-deferred savings features. Plus, employers often match a percentage of their employees’ contributions, which both encourages them to save more and provides an added benefit in the form of additional money from the employer in excess of a salary.