retirement systems

Retirement systems are structured plans designed to provide individuals with income after they stop working. They typically involve saving and investing funds over one's working life, often supplemented by employer contributions. Common types include pensions, which guarantee a fixed income, and defined contribution plans, like 401(k)s, where the payout depends on the contributions made and investment performance. Social Security is a government program that provides basic income support in retirement. The goal of these systems is to ensure financial stability and security for individuals in their later years, allowing them to maintain a comfortable standard of living.