Working for a company that offers a pension plan is one of the greatest financial benefits in Canada.
There are two main types of employee pension plans:
Defined Benefit
Defined Contribution
What is a Defined Benefit Pension plan?
Defined benefit pension plans provide retirement income based on a formula that includes your:
Years of service with your employer
Salary
Age at retirement
What is a Defined Contribution Pension plan?
Defined contribution pension plans provide retirement income based on the savings each member has in the plan.
The amount of retirement income you get depends on:
How much you contribute to the plan
How much your employer contributes
How that money grows over time
There’s no prescribed income level that will be paid
