4 ms·

Are you in the USA? Pensions are defined benefit. That is, it is specified exactly how much money you will receive in retirement. A 401K retirement plan is no

Are you in the USA? Pensions are defined benefit. That is, it is specified exactly how much money you will receive in retirement. A 401K retirement plan is not a pension. You save your own money and possibly an employer contribution, and you make your own investment decisions. The value goes up and down in accordance with what you invested in.

chrisseaton 6y ago
> A 401K retirement plan is not a pension. Are we both talking about https://en.wikipedia.org/wiki/401(k) https://en.wikipedia.org/wiki/401(k)? "In the United States, a 401(k) plan is the tax-qualified, defined-contribution pension"
- Loughla 6y ago
  Defined contribution (401k) is not the same as defined benefit (pension).
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