Where will your retirement money come from?

The money you have in retirement may come from a number of different places, so it’s important you have information about the amount you will receive from each source. It will be beneficial to get an update on the different workplace and private pensions you may have and who is responsible for providing them, to help understand how much you can expect to receive.

You may receive more than one type of workplace pension in retirement. There are two main types of pension and it is important to know which one you have:

Defined Benefit (DB) (otherwise known as ‘Final Salary’)

This type of scheme is usually an employer sponsored occupational pension scheme and is also known as a final salary pension. It defines the benefits that are payable at retirement. The main schemes offered by the University are Defined Benefit schemes.   

For more information on how your pension is calculated please see pension schemes.

Defined Contribution (DC) (otherwise known as ‘Money Purchase’)

This type of scheme can be set up by an employer, who also normally contributes to the scheme, or by an individual where contributions are invested into one or more investment fund(s).

Your employer, workplace pension scheme administrators or pension provider should be able to confirm what type of pension they hold for you.

You can use cash, ISAs, even equity from downsizing your home, as well as pension savings to fund your retirement in a tax efficient way.