The bank accounts are insured for up to $250,000 per account - link

But how much is the amount insured for retirement plans? Say for example that one person payed one million $US in total to the retirement fund for his future retirement. In case the pension fund is going bankrupt, then how much money that person will be compensated?

  • 2
    $\begingroup$ Are you talking about a pension plan specifically (i.e. a defined benefit plan managed by your employer)? Or about a defined contribution plan (i.e. a 401(k), IRA, etc.)? You say "pension plan" which would seem to mean a defined benefit plan but you also talk about someone contributing a million dollars which would imply a defined contribution plan. $\endgroup$ Apr 1, 2019 at 17:22
  • 1
    $\begingroup$ Justin’s comment is spot-on. For a pension, the maximum benefit the government will cover is currently about $67k annually. For defined contribution retirement plans like 401(k) accounts, you’re actually not insured by the government. $\endgroup$ Apr 1, 2019 at 18:14
  • $\begingroup$ Thank you both for the comments. My question was for both pensions and defined contribution retirement plans like 401(k) accounts. Can one of you add dismalscience's answer so I can accept it? Another question is: If you contribute a million dollars that's too much for a defined benefit plan managed by your employer? Say 3k per month for 40 years - that makes 360k x 4 = more than one million. If it's too much then where is the limit? $\endgroup$
    – Joe Jobs
    Apr 5, 2019 at 2:19


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