What is a defined contribution pension?
A pension is a long-term way of saving during your career, helping you to build up an income for the future that you’ll receive when you stop working.
In a defined contribution (DC) pension scheme, also known as a money purchase scheme, you build up a pot of money. We call that pot of money your individual account and you will use that to provide you with an income in retirement. The money that’s paid in by you and your employer is invested with the aim to grow this over time. If you pay in from your own salary the government also adds money though tax relief. This happens automatically for members of our pension scheme.
For a more detailed explanation of how DC pension schemes work, you can visit the MoneyHelper website.
Overview of our DC section
Find out more about the Schroders Retirement Benefits Scheme
State Pension
Did you know that you’re also entitled to a State Pension paid by the government when you reach State Pension age? The amount you receive depends on the number of years you’ve made National Insurance contributions. See our dedicated State Pension page to learn more about this.