A pension plan is a way for you and your employer to set aside money for your retirement. A defined contribution plan is the most common type of pension.

Both you and your employer contribute a percent of your salary over the time that you’re working, and when you retire you can convert that money into your retirement income. The amount that you receive depends on how much has been contributed and how well the investments have done.

Manage your pension or workplace savings plan using your online account. Check your balance, make account changes, create a retirement plan and more.

Canada Life only offers defined contribution plans, but you may have a defined benefits plan from another provider or an older plan.

Difference between these plans	Defined contribution plan	Defined benefits plan
Overview	You know how much is going into the plan	You know how much you’re going to get out of the plan
How is your retirement income determined?	Depends on the market and how much your investments have earned when you retire	Determined by a formula, based on how long you’ve worked and your average earnings in your best years
What do you contribute?	Usually a percent of your income (maximum 18%)	You may or may not contribute – if you do, you’re usually required to pay less than half of the benefits
What does your employer contribute?	Usually a percent of the employee’s income (maximum 18%)	Employer must usually contribute at least half of the benefits
How do taxes work?	The money you contribute is tax-deductible The money you earn from investments won’t be taxed until you withdraw it	The money you contribute is tax-deductible The money you earn from investments won’t be taxed until you withdraw it
Learn more about this plan	Explore this page to learn more about defined contribution plans	Learn more about defined benefits plans

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