What Is A Defined Benefit (DB) Pension?

Defined benefit pensions will have a set age at which you can start the income payments. Once started these pensions will pay out a secure income for the rest of your life which increases each year. You might have one if you’ve worked for a large employer or in the public sector. Your employer contributes to the scheme and is responsible for ensuring that there is enough money at the time you retire to pay your pension income. You will often have the options to contribute to the scheme too. These pensions will usually continue to pay a pension to your spouse, civil partner or dependants when you die but it is always best to check.

The value of pensions and the income they produce can fall as well as rise, you may get back less than you invested.

Transferring out of a final salary pension is unlikely to be in the best interest of most people.