What’s a defined benefit (DB) scheme?

A defined benefit pension scheme pays an amount at retirement based on your earnings and how long you’ve been a member of the scheme. These pensions can also be known as a final salary scheme. Some of these schemes base the amount you receive on a career average salary whereas others may use the salary you were on immediately before retirement.

Was this article helpful?

Please score it so we can improve and offer you more

 Members 9 people found this helpful