Defined Benefit Plan
RetirementA retirement plan where the employer guarantees a specific payout based on salary and years of service — a traditional pension.
Example
Example: For someone with $300,000 in retirement savings planning to retire at 65, defined benefit plan directly affects their strategy. Since it involves a retirement plan where the employer guarantees a specific payout based on salary and, understanding this concept could mean an extra $50,000-$100,000 in retirement assets. Plan with our retirement calculator.