A defined benefit plan is a retirement pension instrument used to provide consistent income for an individual after retirement. A defined benefit works through employers of retired individuals. The employers pay retirees a specified amount (usually monthly or quarterly) based off of a formula using the company’s earnings history, retiree tenure, age, and salary. The retiree must begin collecting payments from the employer by either the 60th day after retirement or the age of 65, unless specified within the plan.
Discuss your Defined Benefit Plan with our Sgroi Financial Advisors to contribute to building your retirement.