INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.
-A defined [contribution | benefit] retirement plan would usually be better for a younger worker who changes employers every five years.

Question

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-A defined [contribution | benefit] retirement plan would usually be better for a younger worker who changes employers every five years.

Quizplus · Accepted Answer

A defined contribution retirement plan, such as a 401(k), allows the employee to contribute a set amount of their salary to the plan, and often the employer will match a percentage of the contribution. This type of plan is easier to transfer between employers and can accumulate significant savings over time, which is beneficial for a younger worker who frequently changes employers. A defined benefit retirement plan, on the other hand, provides a set amount of income during retirement, and it is typically based on the employee's salary and years of service with the same employer—not ideal for a young worker who changes jobs often.

INSTRUCTIONS: Choose the Word or Phrase in [ ] Which