• DB (Defined Benefit) schemes offer guaranteed retirement income based on final salary and years of service—once seen as the “gold standard.” 
• DC (Defined Contribution) schemes shift responsibility to employees, with retirement income dependent on investment performance and contribution levels. 
• The shift from DB to DC schemes has been driven by rising life expectancy, funding pressures, and legislative change. 
• Only 8% of private sector workers are now in active DB schemes; DC is now the norm, especially in the private sector. 
• DC schemes offer cost certainty for employers, but introduce uncertainty for employees. 
• This shift increases the need for financial education, engagement, and support, particularly for SMEs. 
• Master Trusts now dominate the DC space, offering economies of scale and administrative efficiency. 
• Employers play a crucial role by reviewing schemes, offering salary sacrifice, and supporting informed decision-making. 

Understand the pros and cons of Defined Benefit and Defined Contribution schemes.