Defined contribution

What it means

The pot reflects contributions and investment performance. It can go down as well as up. It is different from a defined benefit promise of income.

Sources: MoneyHelper: Defined contribution pension schemes

An example

If a fictional statement says “pot value £18,000 at 30 September”, record both the label and the date. Do not present it as a current balance.

Use it in your pension list

Keep the term beside the original source, rather than using it to fill a gap in your knowledge. If the scheme wording is different, save the wording and ask for clarification. An unknown field is easier to correct than a confident guess.

Keep learning

• Defined contribution and defined benefit explained →
• Defined benefit →