In general, a pension is an arrangement to provide people with an income when they are no longer earning a regular income from employment. Pension plans provide financial security to policyholders during their retirement days and so it’s important to choose a pension plan carefully.
Pension plans may be set up by employers, insurance companies, the government or other institutions such as employer associations or trade unions.
Types of Pensions
A retirement plan is an arrangement to provide people with an income during retirement when they are no longer earning a steady income from employment.
Social and state pensions
Many countries have created funds for their citizens and residents to provide income when they retire.A basic state pension is a "contribution based" benefit, and depends on an individual's contribution history.
Some pension plans will provide for members in the event they suffer a disability.