workplace retirement plans

Workplace retirement plans are savings programs offered by employers to help employees prepare for retirement. Two common types are 401(k) plans and pension plans. In a 401(k), employees can contribute a portion of their salary, often with employer matching contributions, allowing funds to grow tax-deferred until withdrawal. Pension plans provide a fixed monthly income in retirement, based on salary and years of service. These plans encourage saving for the future, providing financial security in retirement through structured contributions and investment growth. Employees should review their options to maximize benefits.