What is a defined contribution scheme?

A defined contribution scheme, sometimes known as a ‘money purchase’ scheme, does not promise a specific income on retirement.

The amount you receive depends on how much has been paid into the scheme, how well your investments have performed, and the choices you make when it comes to accessing your money. Your total sum can go up and down over time, depending on the performance of your investments.

Money is paid into the scheme either by you and/or your employer, as well as contributions from the Government through tax relief.

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