Quote:
Originally Posted by GP_Matt
Defined Benefit and Defined contribution.
DB means that you are guaranteed a payment level or benefit during retirement.
DC means that you are at the whim of the market and your investment choices. Your employer puts money aside but makes no guarantee as to the future value. (This is typically in the form of RRSP matching)
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This is true, but often there are other restrictions with Defined Contribution (DC) as well because you have to keep the funds locked-in. There are some plans that don't need that component, but many are governed by this. What that means is that you are limited in how you can access these funds as they are designed to operate like a pension even though they're more flexible in many respects.