pension systems

Pension systems are financial arrangements designed to provide income during retirement. They typically involve saving and investing money over a person's career so that they have funds to live on once they stop working. 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 individuals contribute a portion of their salary and the final amount depends on investment performance. Governments often regulate and support these systems to ensure stability and security for retirees.