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How does defined benefit pension work?

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Cameron James
How does defined benefit pension work?

The defined benefit pension advice gives a secure income for life which increases every year. If you have worked in a large employer or the public sector, you may have one. Your employer contributes to the plan and is responsible for ensuring adequate funding at retirement to pay your pension income. You can also contribute to the program. In the UK, when you die, they usually pay the final salary pension to their spouse, civil partner or dependents.

A defined benefit plan guarantees you a definite benefit when you retire. How much you usually receive depends on factors such as your salary, age and years of service with the company.

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Cameron James
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