A defined benefit pension (or final salary pension) provides a guaranteed income when you retire, and your employer bears all the investment risk and ongoing charges.Whereas, a defined contribution pension (also known as a money purchase scheme) can be a private or workplace pension, whereby you and/or your employer contributes towards your retirement fund. The amount you receive from your pension depends on the amount of money there is saved in your pension pot when you retire. The responsibility is placed on you and you personally bear the investment risk and ongoing charges, not your employer.