What Does Defined Contribution Pension Plan Mean?

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What does Defined Contribution Pension Plan mean? Read on to discover the definition & meaning of the term Defined Contribution Pension Plan - to help you better understand the language used in insurance policies.

Defined Contribution Pension Plan

Defined Contribution Pension Plan

A defined contribution pension plan is a pension plan in which the employer makes a specific contribution per period of time, typically months or years. However, when the employee retires, the amount the employee can withdraw is not fixed. Instead, it depends on the success of the investments made. In the context of insurance, defined contribution pension plans are often paired with life insurance policies to plan for retirement.

We hope the you have a better understanding of the meaning of Defined Contribution Pension Plan.

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