Defined contribution pensions build up a pension pot using your contributions and your employer\u2019s contributions (if applicable), plus investment returns and tax relief.<\/p>\n
If you\u2019re a member of the scheme through your workplace, then your employer <\/strong> The fund is usually invested in stocks and shares, along with other investments, with the aim of growing it over the years before you retire. You can usually choose from a range of funds to invest in. Remember, though, that the value of investments can go up or down. How much you pay into your pot When you retire, your pension provider will usually offer you a retirement income (an annuity) based on your pot size, but you don\u2019t have to take this, and it isn\u2019t your only option.<\/p>\n","protected":false},"excerpt":{"rendered":" Building up a pot of money to provide an income in retirement With a defined contribution pension, you build up a pot of money that you can then use to provide an income in retirement. Unlike defined benefit schemes, which promise a specific income, the income you might get from a defined contribution scheme depends… Read more »<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"_links":{"self":[{"href":"https:\/\/www.a1-financial.com\/financialnews\/index.php?rest_route=\/wp\/v2\/posts\/2290"}],"collection":[{"href":"https:\/\/www.a1-financial.com\/financialnews\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.a1-financial.com\/financialnews\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.a1-financial.com\/financialnews\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.a1-financial.com\/financialnews\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=2290"}],"version-history":[{"count":0,"href":"https:\/\/www.a1-financial.com\/financialnews\/index.php?rest_route=\/wp\/v2\/posts\/2290\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.a1-financial.com\/financialnews\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=2290"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.a1-financial.com\/financialnews\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=2290"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.a1-financial.com\/financialnews\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=2290"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
\nusually deducts your contributions from your salary before it is taxed. If you\u2019ve set the scheme up for yourself, you arrange the contributions yourself.<\/p>\n
\nThe size of your pension pot and amount of income you receive when you retire will depend on:<\/strong><\/p>\n
\nHow long you save for
\nHow much your employer pays in (if a workplace pension)
\nHow well your investments have performed
\nWhat charges have been taken out of your pot by your pension provider
\nHow much you take as a cash lump sum
\nThe choices you make when you retire
\nAnnuity rates at the time you retire \u2013 if you choose the annuity route<\/p>\n