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DC pension plan basics

​Defined contribution (DC) plans guarantee the contributions to your account, but they don’t provide a guaranteed income in retirement.

3 things to know about contributions

  1. Usually, both you and your employer contribute to the plan. Your employer may match some of the contributions you make.
  2. You are responsible for investing all contributions to grow your savings. In this way, it is similar to an RRSP.
  3. The amount available for your retirement depends on the total contributions made to your account and the investment returns this money earns.
 

 Related resources

 
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2 key points

  1. Contributions are guaranteed, retirement income is not
  2. Retirement savings depend on how much is contributed and how the investments perform