Under a defined benefit plan you receive a promised or 'defined' benefit payout at retirement.

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Retirement planning refers to financial strategies of saving, investments, and ultimately distributing money meant to sustain oneself during retirement. Many popular investment vehicles, such as individual retirement accounts (IRAs) and 401(k)s, allow retirement savers to grow their money with certain tax advantages.
 


Under a defined benefit plan you receive a promised or 'defined' benefit payout at retirement.