Let's not forget about defined benefit pensions
Since pension freedoms were introduced, there’s understandably been an awful lot said about defined contribution pensions. So much, in fact, that it’s quite easy to overlook the fact that 16 million of us have a very different kind of pension waiting for us… a defined benefit pension.
Many of these 16 million people will know that a defined benefit pension – unlike the defined contribution version – offers a set amount in retirement. But fewer will understand exactly how the scheme works. In this month’s Thinking Ahead, we’ll aim to help by be taking a close look at some of the issues for current and future members of defined benefit schemes.
In particular, make sure you read the tax-free lump sum section in our article Defined benefit pensions – how they work for some valuable insight you may not be aware of.
Enjoy the newsletterJohn Lawson - Editor
They’ve been around since the 19th century, but they’re becoming much harder to find. We look at why.