Company pensions explained
- Defined benefit (DB) and defined contribution (DC) pensions compared
- Pros and cons of joining a company scheme
- Auto-enrolment and NEST explained
What's in this guide
Defined benefit (DB) schemes pay out a certain amount at retirement, based on the number of years you belong to them and your salary.
Defined contribution (DC) schemes allow you to build up an individual pension pot. You use this to buy an annuity when you retire.
For most people, joining a company scheme is highly advantageous. An employer's contribution can boost your savings considerably.
Pension transfers can make sense, but you need to check you're not giving up valuable benefits. DB schemes promise to pay a certain amount
From 2012 onwards, everyone will be offered a company pension. Millions will open NEST accounts.