A UK Defined Contribution (DC) pension is a type of pension plan in which the amount of money an employee contributes is invested to build up a retirement fund.

Under this plan, the employee, and often the employer, makes contributions to the pension plan on a regular basis. The money is then invested in a range of assets, such as stocks, bonds, and mutual funds, with the goal of generating a return that will grow the retirement fund over time.

The final value of the pension fund will depend on the amount of money contributed, the investment performance of the plan, and the charges and fees deducted by the plan provider. At retirement, the pension fund can be used to purchase an annuity, which provides a guaranteed income for life, or withdrawn as a lump sum or in stages, subject to certain tax rules.

Unlike a defined benefit pension, the amount of retirement income you will receive from a defined contribution pension is not guaranteed and will depend on a variety of factors, including investment performance and annuity rates at the time of retirement.

In the UK, DC pensions are subject to regulation by the Financial Conduct Authority (FCA) and the Pensions Regulator, which set standards for investment, governance, and disclosure to ensure that individuals can make informed decisions about their retirement savings.