A defined contribution pension plan is a savings plan in which both the employer and employees make pre-defined contributions that are generally based on a percentage of employee salary. Contributions are tax deductible and accumulate on a tax-deferred basis and the amount accumulated is used to determine the annuity amount payable upon retirement.
These plans are generally better suited to employers who want to help their employees build an income for retirement, and in most cases, members provide their own investment instructions for the amounts contributed on their behalf. The funds accumulated cannot be withdrawn before retirement and must be used to purchase an annuity.
At EFG, we offer a complete range of services to set up and maintain the plan, including advisory services to help design the plan and investment strategies. We’ll provide ongoing support and expertise, including a wide variety of investment options and strategies for your peace of mind.