top of page
Defined Benefit (Final Salary) Pension

This is a type of pension where the benefit received depends primarily on the policy holder’s salary at time of leaving or retiring from the employer’s scheme and the number of years of service in the scheme.


Most schemes of this type have now been closed due to the high cost to the employer of providing them, however many individuals will have benefits in this type of scheme either already in payment, or that will commence payment when they reach the scheme retirement age.


Some schemes have remained open but have changed to a Career Average Earnings (or CARE) basis, which means the benefit is based not on the salary when leaving, but the individual's average salary throughout their membership of the scheme.


The main alternative to a Defined Benefit (DB) pension is a Defined Contribution (DC) Pension.

Last updated:

2 November 2022 at 18:35:28

Disclaimer

This glossary definition has been deliberately kept as simple as possible to give a brief outline of the term to assist with general financial knowledge. It is not intended to give a detailed explanation. Please refer to our Legal Declarations.

  • Black Facebook Icon
  • Black Twitter Icon
  • Black Instagram Icon

Spend Time Ltd is registered in England. Our registration number is 11761000. Our registered office address is 71-75 Shelton Street, Covent Garden, London, England, WC2H 9JQ.

​

Authorised and regulated by the Financial Conduct Authority.

We are entered on the Financial Services Register No 917358 at https://register.fca.org.uk/.

 

The information contained within the website is subject to the UK regulatory regime and is therefore primarily targeted at customers in the UK

 

Should you have cause to complain, and you are not satisfied with our response to your complaint you may be able to refer it to the Financial Ombudsman Service, which can be contacted as follows:

The Financial Ombudsman Service, Exchange Tower, London, E14 9SRTel: 0800 023 4567 or 0300 123 9123. 

www.financial-ombudsman.org.uk

​

Please visit our legal declarations pages.

​

LEGAL DECLARATIONS

​

COPYRIGHT © 2019-2025 Spend Time Ltd All Rights Reserved

bottom of page