Defined contribution (pension)
A type of pension that you build up over time. The level of income you receive at retirement depends on how much you’ve paid in (yourself, or via your employer) and how your investments have performed.
The income choices you make at retirement also have an impact on the level of income you can take out. See also defined benefit (pension).
More on Pensions and retirementPopular terms
Lump sum and death benefit allowance
This is a limit on the total tax-free lump sums that can be paid from your pensions both in your...
Lump sum allowance
When you access your pension, you can usually take up to 25% of the value tax-free. The lump sum allowance...
Ready-made pension
A simple, low-cost pension where you choose from four AJ Bell fund options.
Money paid in is automatically invested...