Pension Plans

A pension plan is a retirement savings program where an employer and/or employee makes contributions over time. These contributions are invested to grow a fund that provides income to employees after they retire. There are two main types: defined benefit plans, which guarantee a specific payout based on salary and years of service, and defined contribution plans, where the payout depends on investment performance. The goal of a pension plan is to ensure financial stability for individuals during retirement, allowing them to maintain their standard of living after they stop working.