Can You Answer These 3 Questions About Your Pension Payment?
Many employers have eliminated their defined benefit plan in favor of defined contribution plans, such as the 401(k). In a pension, the employer funds the plan and is responsible for providing plan participants with retirement benefits. In a 401(k) and similar defined contribution plans, the employer may make some contributions, but the funding responsibility largely lies with the employee.
Pensions are helpful in retirement because they provide a guaranteed, predictable source of lifetime income. Even if you haven't put much money away for retirement, you can still count on your reliable pension income after you leave the working world.