pension
A pension is a financial plan that provides individuals with regular income after they retire from work. Typically funded by employers, employees, or both, pensions accumulate money over a person's working life. When a worker retires, they receive payments, which can be a fixed amount or vary based on factors like salary and years of service. Pensions help ensure financial security in retirement, allowing individuals to maintain their standard of living without relying solely on savings or government support. They are an important part of many people's long-term financial planning.
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A pension is a financial arrangement designed to provide income after retirement. Individuals typically contribute a portion of their earnings to a pension plan during their working years, and employers may also contribute. Once the individual retires, the pension pays out a regular income to support them financially. There are different types of pensions, including defined benefit plans, which guarantee a specific payout, and defined contribution plans, where the payout depends on investment performance. Pensions help ensure financial security in retirement, allowing individuals to maintain their standard of living when they are no longer working.