A pension is a financial arrangement that provides individuals with a regular income after they retire from work. It is typically designed to replace a portion of the income lost due to retirement, thereby supporting the individual’s living expenses in their later years. Pensions can be funded through various means, including contributions from the employer, employee contributions, or government funding. There are two main types of pension plans: defined benefit plans, which guarantee a specific payout amount based on factors like salary and years of service, and defined contribution plans, where the payout amount depends on investment performance and contribution levels. Overall, pensions serve as a crucial component of retirement planning, ensuring financial stability for retirees.
The government has significantly increased minimum and non-contributory pensions, providing enhanced financial security for retirees, the disabled, and dependent families. Contributory pensions cover retirement, disability, and widowhood, while non-contributory pensions…