Pension Plans, simply put [Video - 2:29] (2013)

This document is housed on the Sun Life Financial server, under Brighter Life.

This video is part of a series dealing with a variety of financial issues, and looks at how a company pension plan can fit into an overall strategy for retirement savings.

The narrator explains that company pension plans generally are divided into two categories. A defined benefit plan is one that guarantees the amount of retirement benefit the employee receives, usually based on years of service, earnings, and age at retirement. The employee is not involved in the running of the plan.

In a defined contribution plan, the pension benefit is based on the value of the contributions made and the investment returns by the time the employees retire. The company usually makes contributions based on salary, and many plans allow employees to make additional contributions, which the company may match.

The employee has control over investment strategy for the account, based on personal goals and tolerance for risk.

Company pension plans are a good way to supplement other retirement savings, like the publicly funded Canada Pension Plan (CPP), or personal savings like Register Retirement Savings Plans (RRSPs).

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Added: 
2013-07-18
APA citation
Sun Life Financial. Pension Plans, simply put [Video - 2:29] 2013. Web. 13 Aug. 2020 <http://www.youtube.com/watch?v=kDT8flx-e88>
Sun Life Financial (2013). Pension Plans, simply put [Video - 2:29]. Retrieved August 13, 2020, from http://www.youtube.com/watch?v=kDT8flx-e88
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