Introduction to Employer-sponsored Retirement Plans


In the United States, there are two major types of employer-sponsored retirement plans. These are defined-benefit and defined-contribution plans.

In this section, we discuss employer-sponsored retirement plans. Often, these are tax advantaged retirement accounts. As such, these are viable ways to accumulate funds for the golden years in addition to Social Security benefits. What makes these plans excellent is that employers actually contribute money to these funds. Employees who don't take advantage by not participating, lose these contributions. And, as mentioned above, these plans have tax advantages, which makes them even more appealing.


The United States isn't the only country where such plans are offered. For example, such plans are offered in the United Kingdom. However, as more jobs become temporary or on independent contractor basis, even defined-contribution plans plans (which tend to be riskier than defined-benefit plans) are becoming less popular. Therefore, it is important to consider other tax-advantaged retirement plans such as IRAs in the United States.


This section of this website starts with defined-contribution and defined-benefit plans. There are major differences between these two plans, and everyone who works needs to know them. We also discuss investing int these plans. Here, general investing knowledge comes handy. Indeed, this site contains many free articles about investing, so feel free to explore it. 



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