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
Usually, both you and your employer contribute to the plan. Your employer may match some of the contributions you make.
You are responsible for investing all contributions to grow your savings. In this way, it is similar to an RRSP.
The amount available for your retirement depends on the total contributions made to your accountAccount An agreement you make with a financial institution to handle your money. You can set up an account for depositing and withdrawing, earning interest, borrowing, investing, etc.+ read full definition and the investmentInvestment An item of value you buy to get income or to grow in value.+ read full definition returns this money earns.
2 key points
Contributions are guaranteed, retirement income is not
Retirement savings depend on how much is contributed and how the investments perform