# Pension (Defined Benefit Plan)

*Retirement & Benefits — Finicade finance glossary*

A defined benefit pension promises a set income in retirement based on salary and service, with the employer bearing investment and longevity risk.

A defined benefit pension promises a specified income in retirement, usually based on salary and years of service, with the employer bearing the investment and longevity risk. It's the arrangement that made retirement predictable for a generation and has largely disappeared from the private sector because that risk proved enormous. Where they survive, the plan's funding level and any government guarantee limit are what a member should actually check.

**Also known as:** defined benefit plan, final salary pension, DB pension

**Related terms:** [Defined Contribution Plan](https://finicade.com/glossary/defined-contribution-plan), [Annuity](https://finicade.com/glossary/annuity), [Longevity Risk](https://finicade.com/glossary/longevity-risk), [Lump Sum vs Annuity](https://finicade.com/glossary/lump-sum-vs-annuity), [Social Security](https://finicade.com/glossary/social-security)

Source: https://finicade.com/glossary/defined-benefit-pension