Pensions

Pensions play a vital role in retirement income for most people, so learning about them is important. There are two types, as follows:

• Defined Benefit Plans - these plans promise to pay out a fixed monthly amount to the retiree; and



• Defined Contribution Plans - these plans specify an amount that the company will pay into the plan each year.

Marriage, divorce, death of a spouse and changes to a company's financial situation (mergers, sales, etc.) may affect a retiree's pension.

For more information on pensions and other retirement subjects, visit our Publications and Links pages and look under the subject headings "Pensions" or "Retirement". You can also contact us for more information or assistance.