Final answer:
The typical stock market-driven retirement plans include IRAs and 401(k) plans. ESOPs are also linked to the stock market. ERISA regulates these plans to ensure workers receive promised benefits.
Step-by-step explanation:
Among the retirement plans typically tied to the stock market, the most notable examples are Individual Retirement Accounts (IRAs) and 401(k) plans. An IRA is generally established by an individual and provides deferred taxation on savings, potentially boosting the return on investment. In contrast, a 401(k) is a workplace retirement plan where both employer and employee can make contributions. The employer often contributes a fixed amount regularly, and employees can select among various investment options.
These schemes offer tax advantages and are portable, meaning they can be transferred if changing jobs. They are designed to combat inflation's impact on retirement savings by potentially generating real returns on investment. ESOPs (Employee Stock Ownership Plans) are another workplace retirement option, allowing employees to invest in their company's stock. ERISA (Employee Retirement Income Security Act) is not a retirement plan but a federal law that sets minimum standards for most voluntarily established retirement plans, ensuring that employees receive the pension benefits promised by their employer.