Unlike a defined contribution pension, an employee doesn’t usually have to pay into a defined benefit pension. This alone can make it a very valuable workplace benefit. These days, you’d be considered lucky to have a defined benefit pension. That’s because, while its benefits are considered more lucrative than the more common defined contribution pension, fewer and fewer employers are offering it to their employees. In short, defined benefit pension plans have become too expensive for employers to run.But if you are one of the ‘lucky ones’, you might be wondering exactly how it differs from a defined contribution pension plan. And this information could be particularly helpful if you’re considering moving jobs and away from your defined benefit pension scheme.What is a defined benefit pension plan?Unlike a defined contribution pension, an employee doesn’t usually have to pay into a defined benefit pension. Instead, the employer covers this cost alone. They manage the investments themse...
