Pension Plans and Benefits

Pension plans are financial programs that provide retirement income to individuals, typically funded by contributions from both the employee and employer. 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 amount of retirement income depends on contributions and investment performance. Benefits from pension plans aim to ensure financial stability in retirement, helping individuals maintain their standard of living after they stop working. Understanding these plans is crucial for effective retirement planning and financial security.