Overwhelmed by all the pension jargon? Fear not, our pension glossary has you covered. All the important terms and acronyms explained right here.
What is a Money Purchase Plan?
Most pension schemes are money purchase schemes, where the amount of money you receive at maturity is not linked to your salary, but to the performance of your pension investments. With these schemes, also known as defined-contribution schemes, you can choose how to access your pension at age 55, either by buying an annuity, using drawdown or taking the full amount as cash, if your scheme allows it, or you can transfer it to one that does.