A defined benefit pension is a type of pension scheme that provides a guaranteed income for life based on a formula that takes into account your salary and length of service. In other words, the amount you receive in retirement is predetermined and not based on the performance of investments or the amount of money you contribute to the pension plan.

In a defined benefit pension scheme, your employer takes on the investment risk and is responsible for ensuring that there are sufficient funds to meet the promised pension benefits. Contributions are made by both you and your employer, but the employer is typically responsible for funding any shortfall in the pension fund.

The amount of your pension benefit is calculated based on a formula that takes into account factors such as your salary and years of service. For example, a common formula might be 1/60th of your final salary for each year of service. So, if you had 30 years of service and a final salary of £50,000, your annual pension benefit would be £25,000 (30/60 x £50,000).

When you retire, you can choose to receive your pension benefits either as a regular income or as a lump sum. The amount of your pension benefit is usually adjusted each year to account for inflation, so you are protected against rising prices in retirement.

Overall, a defined benefit pension provides greater certainty and security than a defined contribution pension, as your retirement income is guaranteed regardless of market performance. However, they are becoming increasingly rare and are mostly offered to public sector employees.