涩里番

Canada鈥檚 two main workplace pension plans differ primarily in who bears investment and longevity risks.聽Sebastien Betermier, associate professor of finance at 涩里番聽Desautels, explains that defined benefit plans guarantee employees a predetermined income throughout retirement, while employers assume the associated risks.

鈥淎 defined benefit plan offers greater financial security for employees because it provides a stable, lifelong source of income,鈥澛燘etermier聽says. By contrast, retirement income from a defined contribution plan depends on investment performance and how long savings last.

However, these plans offer greater flexibility and portability, potentially making them better suited to employees who change jobs聽frequently.聽