Defined benefit pension
A defined benefit pension promises a retirement income based on your salary and length of service, and the employer carries the investment risk.
Also known as: DB pension, final salary pension, final salary
These are now mainly found in the public sector, and some older private schemes. The guaranteed income is valuable, so be extremely careful before transferring out, and take regulated advice.
Pension scammers often target defined benefit members with promises of better returns elsewhere.
Free, impartial guidance is available from MoneyHelper and Pension Wise. Be wary of any unsolicited offers about your pension or investments.
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9 min readReadThis page provides general information only. It is not personalised financial, legal or tax advice, and rules and figures can change. Your situation is unique — please check official sources such as GOV.UK and MoneyHelper, and speak to a qualified, FCA-authorised adviser before making important decisions about your money.