Insurance Description
Pension
A pension is a financial arrangement designed to provide individuals with income during retirement. It is typically funded through contributions made by employers, employees, or both over the individual's working life. Pensions can be categorized into defined benefit plans, which promise a specific payout upon retirement, and defined contribution plans, where the amount depends on the contributions and investment performance. Governments often provide public pensions, while private sectors offer occupational or personal pension schemes. Pensions ensure financial security in old age, reducing dependence on others and maintaining a stable standard of living after active employment ceases.
