An employer's pension scheme where your retirement benefits depend on the amount you've paid in, how much the investments have grown and annuity rates when you retire. back
An employer pension or a personal pension, the benefits from which are subject to contribution levels, investment performance and annuity rates.
a scheme where the pension benefits are based on the value of the investment at retirement
Pension schemes where you build up a pot of cash, out of which your pension will be generated, also known as a defined contribution scheme. Personal Pension Plans and AVCs work on this kind of system, as do an increasing number of occupational pension schemes. This pot of cash has to be used to buy an annuity.
Another name for a defined contribution scheme.
A pension scheme providing benefits on a money purchase basis.
A pension scheme which provides a pension, the amount of which is dependent on how much money has been invested in it, and how much investment return has been earned from that money.
A pension scheme providing benefits determined by the contributions made in respect of a member and the investment return on those contributions. At retirement the accumulated fund is used to purchase an annuity. All personal pensions (and some occupational schemes) are 'money purchase schemes'.