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Glossary > M > "Money Purchase Scheme" Definition

Money Purchase Scheme

A pension scheme providing benefits determined by the contributions made in respect of a member and the investment return on those contributions. At retirement the accumulated fund is used to purchase an annuity. All personal pensions (and some occupational schemes) are "money purchase schemes".

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Money Purchase Scheme - A pension scheme providing benefits determined by the contributions made in respect of a member and the investment return on those contributions. At retirement the accumulated fund is used to purchase an annuity. All personal pensions (and some occupational schemes) are "money purchase schemes".

Money Purchase Scheme : a pension scheme providing benefits determined by the contributions made in respect of a member and the investment return on those contributions. at retirement the accumulated fund is used to purchase an annuity. all personal pensions (and some occupational schemes) are "money purchase schemes".