Private Sector Pensions

Private sector pensions are retirement savings plans provided by employers for their employees, separate from government programs. Employees or employers contribute money regularly into a pension fund during working years. This fund grows over time and is used to pay benefits after retirement, helping individuals maintain income stability. There are different types of private pensions, such as defined benefit schemes, which promise a set payout, and defined contribution schemes, where benefits depend on investment performance. Private sector pensions are essential for financial planning, providing an additional income source to support individuals once they stop working.