How much is enough?

Lesson 11 of 13 in our free Pensions guide: a 5-minute money game with the key points below.

This lesson is in the full version.

Free with a code from your uni, college, council, landlord or employer (worth £600/year). Lesson 1 of Pensions is free for everyone.

Questions you'll answer

Illustration: £200 paid in once at age 27, growing 6% a year, untouched until 67 (40 years). Roughly what's it worth?

Who offers free, impartial pension guidance?

Pays a set income based on salary and years worked → Defined benefit. Defined benefit — the income is 'defined'.
Your pot depends on contributions, investment growth and fees → Defined contribution. Defined contribution — the payments in are defined, the outcome isn't.
The most common type for new private-sector jobs → Defined contribution. Most auto-enrolment schemes are defined contribution.
The employer carries the investment risk → Defined benefit. The employer has to fund the promise.