Private Sector Retirement Plans

Private sector retirement plans are employee-sponsored programs, established by private companies, that help workers save for retirement. Common types include 401(k) plans, where employees contribute a portion of their salary, often with employer matching, and pension plans, where the employer guarantees a specific retirement benefit. These plans provide tax advantages, encouraging saving and investment for the future. They are separate from government programs like Social Security and are essential for many workers to build financial security after leaving the workforce. Participation and benefits vary depending on the employer and the specific plan.