Definitions

money-purchase

Money Purchase

A Money Purchase scheme is a type of pension arrangement in the United Kingdom.

It can either be sponsored by an employer or an individual arrangement with an insurance company. Basically, with type of arrangement a sum of money is accrued which is then used to secure a pension in retirement. It is sometimes known as a Defined Contribution scheme to distinguish it from a Defined Benefit scheme where the benefits are payable are linked to salary.

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