A retirement savings plan
where only the contribution
levels are specified, not the end benefit
. In the U.S.
, the most common type of DC plan is the 401(k)
plan, but there are DC plans where only the employer makes contributions (i.e. a money purchase pension plan
In a DC plan, the employee bears the market risk. Also, most DC plans are portable, meaning you can transfer your money to another retirement account when you quit your job.