A Defined Contribution plan is a retirement savings program where both employees and employers can contribute a set amount of money regularly. The contributions are typically invested in various financial instruments, such as stocks or bonds, and the final retirement benefit depends on the total contributions and investment performance over time. Unlike Defined Benefit plans, which guarantee a specific payout at retirement, the amount received from a Defined Contribution plan can vary. Common examples of Defined Contribution plans include 401(k) and 403(b) plans, which allow individuals to save for retirement while enjoying potential tax advantages.