What is a Defined Contribution Pension (aka money purchase)?

A defined contribution pension is a type of pension scheme where the income in retirement value of the pension pot depends on how much has been contributed into it and how this has grown over time.

There is not a guaranteed payable sum when the pension owner comes to the value of your fund at your retirement age, and the value will come from contributions from the individual, their employer, and any gains from the market.

Related terms
What is a Defined Benefit Pension
What is an Annuity