A defined benefit pension scheme is a retirement plan that provides guaranteed income in retirement. The main benefit of a DB pension is that it is a guaranteed payment, which means that you know exactly how much you will receive each month. There are pros and cons to a DB pension, but overall, they can be very beneficial if you choose the right plan and invest your money wisely.
The main pro of a DB pension is that it’s a guaranteed payment. This means that you know exactly how much money you will receive each month in retirement, no matter what happens with the stock market or the economy. This can be especially helpful if you’re not sure whether you’ll be able to retire on your current salary or not.
Another pro of a DB pension is that it’s usually tax-free. This means that your monthly payments are free from taxes, which can save you a lot of money in the long run.