The biggest difference between a 401(k) plan and a traditional pension plan is the distinction between a defined benefit plan and a defined contribution plan. Defined benefit plans, such as pensions, guarantee a given amount of monthly income in retirement and place the investment risk on the plan provider. read more
Difference between 401k and Pension. Both 401k as well as pension are plans for retirement, and guarantee good financial health in old age. Pension plans have been there a long time now but 401k is gradually replacing pension everywhere in the United States. read more
Understanding the Difference Between a Pension Plan and a 401(k) Plan There are many different financial plans that can help you save for a comfortable retirement. However, since all retirement plans have their own features and benefits, it's not always easy to know which one to select. read more