Synonyms
Related Topics
Pension plans, annuities, joint life
Definition
Under defined contribution plan, each employee has an account into which the employer and the employee make regular contributions. Benefit levels depend on the total contributions and investment earnings of the accumulation in the account. In a defined benefit plan, the employee’s pension benefit entitlement is determined by a formula which considers years of contribution and, in most cases, wage levels.
Overview
Retirement is an important stage on individual’s lifecycle; in the past, most of individuals remained in the labor force until very older ages; in the last few decades, a reduction in retirement ages was observed. Also, if in the past the family was the main source of retirement support, recent decades observed an increase in both public and private retirement and pension schemes. In recent years, individuals receiving retirement benefits have increased and are...
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Queiroz, B.L., Galletti, T.P., Silva, J.G. (2021). Defined Benefit and Defined Contribution. In: Gu, D., Dupre, M.E. (eds) Encyclopedia of Gerontology and Population Aging. Springer, Cham. https://doi.org/10.1007/978-3-030-22009-9_520
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DOI: https://doi.org/10.1007/978-3-030-22009-9_520
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