defined contribution pension schemes

Defined contribution pension schemes are retirement plans where both employees and employers contribute a set amount of money regularly. The money is invested, and its value grows over time. When the employee retires, they receive the total accumulated amount, which can vary based on contributions and investment performance. Unlike defined benefit plans that guarantee a certain payout, the retirement benefits in defined contribution schemes depend on how well the investments perform. Employees have some control over how their funds are invested, but they also bear the investment risks.