A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

What is the difference between a pension and a 401k?

Best Answers

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

No matter how you compare a pension vs 401k, you'll find that the flexibility of the 401k can far out-weigh the promise of so-called guaranteed income. read more

Encyclopedia Research