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One that pays an annual income in retirement based on employee salary in the final years of employment and length of service.

When you contribute to a final salary scheme you and the company usually make contributions into a fund with other members.

Investments are then made by investment managers appointed by the Trustees of the Fund, or by agents, in the case of property, after professional advice has been taken.

In a money purchase scheme, an individual pot of money is saved on your behalf.
On retirement, the money can be used to buy an annuity, usually from an insurance company, that pays an income until you die.
Since April 2015 it is also possible for members with sufficient funds to go into drawdown where the bulk of the pension pot remains invested so that it can increase in value – or decrease according to the performance of the investments, charges and commission – and amounts can be drawn down as income at intervals.
It is also possible to take the whole of the pension pot as a lump sum but this may result in a member facing a very high tax bill – depending on the amount involved.
What you collect on retirement depends on how much you and your employer contribute, the investment performance of your savings minus the costs of running the fund.