What is a defined benefit plan?
A defined benefit plan is an older style of superannuation that was common in public sector and local government workplaces until the 1990s. A defined benefit pension guarantees the amount you will receive in retirement. Defined benefit funds are mostly closed to new members.
What can I do with a defined benefit fund?
Most defined benefit funds bring with them some unique advantages - including a guaranteed income.
Many people with defined benefit plans also have a regular super fund which they can convert to an income stream at retirement.
How do I join a defined benefit fund?
These days, if you’re looking for a defined benefit product they are few and far between. If you do find one that’s still open, it’s likely that the income guaranteed will be much less than with the old ones.