How Does a Defined Contribution Pension Plan Work?

Photo by Elena Rabkina / Unsplash

In another recent blog post, we discussed defined benefit pensions and how they work. I promised that we would also cover Defined Contribution (DC) plans. These are more common and are more flexible than Defined Benefit (DB) Schemes but can also be seen as riskier as the risk of them sits with the employee, i.e. you.