How does a defined benefit plan work?
A defined benefit plan is also known as a pension plan. The calculation of a pension plan is made according to the amount of time you work in that certain sector, and the average income received throughout those years. The payment of pension money occurs upon retirement, and each company does it differently. Pensions are really hard to find nowadays, the status of benefit plans has a lot to do with the health of the company. It depends if the company is fully funding its pension plans. There is a pension outfall in the United States because companies weren’t able to completely fund their pension plans. The only downside to pensions is the fact that the money is not really yours until the time you retire and receive it. Until then, anything can happen. For those who do have a pension plan, it is a great base for social security upon retirement.
Have more questions? Contact Us
Casey Smith
President, Wiser Wealth Management
Click here to schedule a consultation with one of our financial planners.
Listen to Our Podcast:
Recent posts
Share This Story, Choose Your Platform!
Wiser Wealth Management, Inc (“Wiser Wealth”) is a registered investment adviser with the U.S. Securities and Exchange Commission (SEC). As a registered investment adviser, Wiser Wealth and its employees are subject to various rules, filings, and requirements. You can visit the SEC’s website here to obtain further information on our firm or investment adviser’s registration.
Wiser Wealth’s website provides general information regarding our business along with access to additional investment related information, various financial calculators, and external / third party links. Material presented on this website is believed to be from reliable sources and is meant for informational purposes only. Wiser Wealth does not endorse or accept responsibility for the content of any third-party website and is not affiliated with any third-party website or social media page. Wiser Wealth does not expressly or implicitly adopt or endorse any of the expressions, opinions or content posted by third party websites or on social media pages. While Wiser Wealth uses reasonable efforts to obtain information from sources it believes to be reliable, we make no representation that the information or opinions contained in our publications are accurate, reliable, or complete.
To the extent that you utilize any financial calculators or links in our website, you acknowledge and understand that the information provided to you should not be construed as personal investment advice from Wiser Wealth or any of its investment professionals. Advice provided by Wiser Wealth is given only within the context of our contractual agreement with the client. Wiser Wealth does not offer legal, accounting or tax advice. Consult your own attorney, accountant, and other professionals for these services.
