top of page
Defined Contribution (Money Purchase) Pension

This is a type of pension where the eventual benefits payable to the member are dependent upon the value of the fund that has been accumulated. The fund will usually be invested in accordance with the individual's attitude to risk, with the intention of growing the pension fund size as much as possible.


When it comes to drawing benefits, there is normally an entitlement to a Pension Commencement Lum Sum (tax free cash). The remainder of the fund is usually used to provide a taxable income, either by way of an Annuity, or through Drawdown.


Upon death of the member, the residual fund is usually paid to the member's nominated Beneficiary.


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

Last updated:

2 November 2022 at 18:32:45

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