Recent changes in how employees receive retirement, e.g. througha defined contribution plan vs. a...

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Accounting

Recent changes in how employees receive retirement, e.g. througha defined contribution plan vs. a defined benefit plan, have causedmany to question whether they can retire at the age they expected.Please address responses to the following questions:
What is the main difference between the 401(k)-type, e.g.defined contribution plans, vs. traditional pension plans, e.g.defined benefit plans?
Which type of retirement plan do you prefer and why?
What type of retirement plan do you have at your place ofemployment?

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Difference A defined benefit plan has a specific amount of pension or other monetary benefits for an employee after retirement Therefore the amount is fixed and guaranteed by the employer Only the employer contributes whole amount of money in See Answer

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In: AccountingRecent changes in how employees receive retirement, e.g. througha defined contribution plan vs. a defined...Recent changes in how employees receive retirement, e.g. througha defined contribution plan vs. a defined benefit plan, have causedmany to question whether they can retire at the age they expected.Please address responses to the following questions:What is the main difference between the 401(k)-type, e.g.defined contribution plans, vs. traditional pension plans, e.g.defined benefit plans?Which type of retirement plan do you prefer and why?What type of retirement plan do you have at your place ofemployment?