Retirement Investing

Defined-Contribution Plan

Definition

What is Defined-Contribution Plan?

A pension arrangement where contributions are invested and retirement value depends on contributions and returns.

Example in practice

The employee's account grows with monthly deposits and market performance.

Keep learning

Annual portfolio withdrawals divided by the portfolio's starting or current value.

An estimated withdrawal rate intended to support spending over a long retirement under stated assumptions.

The risk that poor returns early in a withdrawal period cause lasting portfolio damage.

The property, investments, rights, and obligations left by a person at death.

Think you know your investing terms?

Put your knowledge to the test with a quick quiz.