pension

A pension (; ) is a fund into which amounts are paid regularly during an individual's working career, and from which periodic payments are made to support the person's retirement from work. A pension may be either a "defined benefit plan", where defined periodic payments are made in retirement and the contributions to the pension are adjusted to support these defined retirement payments, or a "defined contribution plan", under which defined amounts are paid in during working life, and the retirement payments are whatever can be afforded from the fund.

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A pension is a fund that workers and their employers contribute to during their working years, which then provides regular payments to support them after retirement. Pensions can work in two ways: some guarantee a specific amount in retirement payments (defined benefit), while others depend on how much was contributed and how well the investments performed (defined contribution).

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Commons category: Retirement

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Article

45 sections

Contents

Types
Employment-based pensions
Military
{{anchor|State pension}}State pension
Social pensions
Disability pensions
Defined benefit plans
Criticisms
Defined contribution plans
Examples
Risk sharing pensions
Risk sharing pension sponsor examples
Life annuity
Funded
Pay-as-you-go
Actuarial fairness
Underfunding
Dependency ratio
Economic challenges
Pension crisis
Balancing pension funding
Increase of pension contributions
Decrease of real pensions
Balancing total fertility rate
Effects
Risk and responsibility
Incentives for parental investment
Gender pension gap
Years in retirement
Pillars
Zero pillar
First pillar
Second pillar
Third pillar
Fourth pillar
Pension systems by country
History
Germany
Ireland
Spain
United Kingdom
United States
References
Further reading
External links

Pensions should not be confused with severance pay; the former is usually paid in regular amounts for life after retirement, while the latter is typically paid as a fixed amount after involuntary termination of employment before retirement.