The common use of the term pension is to describe the payments a person
receives upon retirement.
A Pension is a steady income given to a person, usually after retirement. Pensions are typically payments made in the form of a guaranteed annuity to a retired employee. In certain cases some retirement plan designs accumulate a cash balance that a retiree can draw upon at retirement.
A pension created by an employer for the benefit of an employee is referred to as an occupational pension or employer pension.
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