These are based on an average of your salary throughout your career.
Defined benefit pension schemes provide valuable benefits as they offer a guaranteed pension income when you retire. This is based on salary and length of service.
In this way, they provide members with some certainty about their retirement income.
They’re usually backed by a sponsoring employer, but sometimes the benefits have been secured by transferring to an insurance company.
To spread investment risk, schemes typically invest in a range of assets. These can include company shares, property, and long-term government bonds.
Many defined benefit schemes have either been closed to new members, or to all members, in recent years. But you might have one if you’ve previously worked for a large employer or in the public sector.