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    Defined Benefit vs Defined Contribution

    Defined Benefit vs Defined Contribution Retirement plans have always been a popular topic in personal finance. People come up with different questions related to the difference between a defined contribution pension plan and a defined benefit pension plan. Regardless of their similar names, there are vast differences as to what they offer the employee at the time of retirement. Defined Benefit Pension A Defined Benefit pension plan, also known as the gold-plated plan is exactly as it sounds. A certain formula has been fixed to payout when it is time to collect. The formula incorporates a percentage of your average salary multiplied by the years of services you have provided over the years of your employment. Government typically offers a Defined Benefit pension plan with 60 percent to 70


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