What Retirement Income could you have with a Defined Benefit Pension?
You may not need to transfer to a Defined Contribution Pension
Sometimes we forget that not everyone has a defined contribution (DC) workplace pension.
In fact, if you’re a doctor or teacher, then you probably have a defined benefit (DB) pension.
But what is a DB pension, how is it different, and how much could I have at retirement age?
Instead of accumulating a pot, a DB pension provides you with a guaranteed income for life.
This is based on how long you’ve been with an employer and the salary you had while there.
DB pensions pay you a secure income for life, which even increases each year with inflation.
They usually even continue to pay a pension to your spouse/partner when you pass away.
In this article, I talk a bit about defined benefit pensions: what they are, their pros, and cons.
I also talk about how you can calculate your potential income with a defined benefit pension.
Finally, I discuss the big question: should you transfer over to a defined contribution pension?
