Saturday, May 04, 2019

Defined benefit vs. Defined contribution pension plans

A defined benefit plan is 'defined' in the sense that the benefit formula is defined and known in advance.

Conversely, for a "defined contribution retirement saving plan", the formula for computing the employer's and employee's contributions is defined and known in advance, but the benefit to be paid out is not known in advance.

Employees usually prefer the defined benefit pension, while employers prefer defined contribution.

Comparison of UK bank fees for receiving international payments

HSBC Receiving Euros from the EEA: no fee Receiving Less than £100 from outside the EEA: £5 Receiving More than £100 in another currency, ...