Pension Plan

A pension plan is a retirement savings program offered by employers or established by individuals that provides financial support to employees after they retire. It typically involves regular contributions made during the employee's working years, which are then invested to grow over time. When the employee retires, they receive a steady income from the plan, often based on their salary and years of service. This helps ensure financial stability in retirement, as it guarantees a source of income rather than relying solely on personal savings or government assistance. There are various types of pension plans, including defined benefit and defined contribution plans.