Defined Benefit Pension

Defined Benefit Pension

Formerly known as a final salary scheme, you’re most likely to have a defined benefit (DB) pension if you work in the public sector or for a large company.

This is a salary-related pension which pays out a secure income for life and increases each year.

The pension you get is based on how long you’ve been a part of the scheme and how much you earn.

You might have a final salary type scheme where your pension is based on your pay when you retire or leave the scheme. Alternatively, you may have a career-average pension where your pension is based on the average of your pay while you were a member of the scheme.