Defined Contribution (DC) pension plan

A plan that has no pre-determined or guaranteed rate of income while you’re paying in, or in retirement. Contributions can be paid in by employees and employers and are then invested. With this type of pension it is important to remember that value of your investment could go up or down. Some DC plans allow you to select from a range investment options.

See also: Annual Management Charge (AMC), Total Expense Ratio (TER), Automatic enrolment, Pension Tracing Service, Self invested personal pension (SIPP), Stakeholder pension, Personal pension

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