Defined Contribution Schemes

A Defined Contribution Scheme is a retirement plan where both you and your employer contribute a fixed amount or percentage regularly into your individual pension account. The money is invested, and the final amount you receive upon retirement depends on how well those investments perform over time. It’s different from a defined benefit scheme, which guarantees a specific payout. Essentially, your future pension depends on the contributions made and how investments grow, making it important to manage your contributions and understand investment risks for a secure retirement.