Defined benefit schemes are traditionally associated with large corporate and public-sector superannuation funds. Essentially, the final benefit amount is calculated by several variables, including but not limited to age, time as a member or duration of employment and salary. Because the benefit is not subject to the market performance, it provides members with a degree of certainty. Usually, the benefit is corelated to a person’s final salary, for example 70% of the average of the last four years’ salary. The benefits may be made in the form of a pension or lump sum. These types of benefits a being phased out and are more of a legacy product used in the past.

RECENTLY ADDED

Superannuation|

Updates to Superannuation – Guide for New Legislative Changes in 2019

October 17, 2019
Investments|Superannuation|

How Superannuation Funds Invest Your Money

October 10, 2019
Investments|Wealth Growth|

The Power of Compound Interest

October 2, 2019
Estate Planning|

Wills

September 26, 2019