Final salary pension
Also known as a ‘defined benefit’ pension, this is a special type of workplace pension which provides a guaranteed income for life – based on your salary at retirement.
Final salary pensions are less common today. Even in the public sector, most schemes now base the pension you’re entitled to in retirement on the average of your career earnings, rather than your final salary.
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...