Stock Market Investors » Glossary of Stock Terms » What is a Defined Contribution Plan?

What is a Defined Contribution Plan?

One of the many retirement plans you can choose from is the defined contribution plan. Under its conditions the benefit you will get is not specified. However, as its name implies, the contribution is fixed.

What is considered important by such retirement plans is the amount that is contributed and the persons that make the corresponding contributions. The amount you get when you retire depends on the returns you get throughout the investing process.

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