Comment: Just how generous is defined benefit?

Jenna Towler looks at the DB/DC divide

Jenna Towler
clock

A 35-year-old joining a defined contribution fund today could have to contribute more than ten times the amount of his colleague in a defined benefit scheme to get the same outcome.

That statistic, from Pension Corporation, equates to 55% of gross salary for the DC member – which last year, for someone on average wages was £14,000. However, the DB member would have to put just...

To continue reading this article...

Join Professional Pensions

Become a Professional Pensions Lite Member today

  • Three complimentary articles per month covering the latest real-time news, analysis and opinion from the industry
  • Receive important and breaking news stories via our two daily news alerts
  • Hear from industry experts and other forward-thinking leaders

Join now

 

Already a Professional Pensions
member?

Login

More on Industry

FCA unveils final pensions dashboards rules

FCA unveils final pensions dashboards rules

The FCA has shared its regulatory framework for pensions dashboards service firms

Holly Roach
clock 08 November 2024 • 4 min read
Inaugural Bloomfield Lecture focuses on lifelong financial independence for all

Inaugural Bloomfield Lecture focuses on lifelong financial independence for all

Talk explores approaches to promote greater adequacy and equity for all

Professional Pensions
clock 08 November 2024 • 2 min read
Tesco joins PASA as a corporate member

Tesco joins PASA as a corporate member

The company joins over 70 other PASA corporate members

Holly Roach
clock 08 November 2024 • 1 min read
Trustpilot