What pension schemes are known as defined contribution?
A defined contribution scheme could be offered by an employer or set up by an individual as a private pension. The benefits provided at retirement age by a defined contribution scheme will be wholly dependent on the contributions made by the employer, the individual or by both. These schemes are usually administered and the assets managed by a life assurance company where the fund managers must be authorised by the Financial Services Authority (FSA). At retirement the spouse can use a pension fund to buy an annuity and has the option to use an open market option to search for the highest pension annuity, adding all the features necessary such as escalation and frequency of payment. Once you have purchased an annuity it cannot be changed, so learn more about annuities, compare annuity rates and before making a decision at retirement, secure a personalised pension annuities quote offering guaranteed rates. An employer can offer the employees a defined contribution scheme in the form of a
