Defined contribution pension scheme: Difference between revisions
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A pension scheme where benefits are based on how much money has been paid into the scheme and the investment returns earned, a significant part of the sum achieved often being invested in an annuity at market rates at or soon after retirement. | A pension scheme where benefits are based on how much money has been paid into the scheme and the investment returns earned, a significant part of the sum achieved often being invested in an annuity at market rates at - or soon after - retirement. | ||
Such schemes are by definition funded. | Such schemes are by definition funded. | ||
Revision as of 22:13, 19 April 2020
(DC).
A pension scheme where benefits are based on how much money has been paid into the scheme and the investment returns earned, a significant part of the sum achieved often being invested in an annuity at market rates at - or soon after - retirement.
Such schemes are by definition funded.
Also known as money purchase schemes.
