Defined Benefit (DB) (otherwise known as ‘Final Salary’)
This type of scheme is usually an employer sponsored occupational pension scheme and is also known as a final salary pension. It defines the benefits that are payable at retirement. The main schemes offered by the University are Defined Benefit schemes.
For more information on how your pension is calculated please see pension schemes.
Defined Contribution (DC) (otherwise known as ‘Money Purchase’)
This type of scheme can be set up by an employer, who also normally contributes to the scheme, or by an individual where contributions are invested into one or more investment fund(s).
Your employer, workplace pension scheme administrators or pension provider should be able to confirm what type of pension they hold for you.
You can use cash, ISAs, even equity from downsizing your home, as well as pension savings to fund your retirement in a tax efficient way.
Complete the activity below to assist you in identifying the various savings and investments you have in order to create a retirement income.