In the ideal scenario, the older investor has stashed those big early gains in a safe place, while still adding money for the future. Employee Savings Plan ESP Definition An employee savings plan is an employer-provided tax-deferred account typically used to save for retirement, such as a defined contribution plan. If your employer doesn’t offer a k , or if it offers one that’s truly lousy , your next best bet is to save for retirement in an IRA. Article Table of Contents Skip to section Expand. In fact, over time the fund may swing wildly between big gains and big losses. Risk Tolerance. Snag your full employer match.