Defined Benefit Pension Facts

A defined benefit pension provides a solid base for retirement planning, but there are other things people should do to prepare for a comfortable retirement. We’ve assembled some fast facts to help take the mystery out of pensions and other ways people plan their retirement income.

Members of a DB pension plan can rely on a stable amount of pension income in retirement because payments are based on a formula using years of service and salary, and are paid for life.
Unlike personal investments, a DB member’s pension is not directly impacted by ups and downs in the economy.  DB plans make investment decisions over a long-term horizon and are structured to weather market volatility.
DB pension funds are managed by experienced investment professionals, with the majority of DB pension dollars paid coming from investment returns, not contributions.
Retirees of DB plans stimulate the economy by spending in retirement, as they know what their monthly income will be.
DB pensions represent a valuable source of retirement income.  Other sources include personal savings (like RRSPs) and government programs such as CPP and OAS.

Share This Page!

We need your help in raising DB awareness!

Join and help to spread the word so that together we can help others learn about the value of defined benefit pensions.

I'm in!