Description

Pension funds, which are also known as retirement funds, is a kind of savings scheme where you (as an employee) invest a small portion of your income/salary into a designated savings plan. … A pension plan will help you get an income and support your family when you have no other income source.

A pension is a type of retirement plan that provides monthly income after you retire from your position. The employer is required to contribute to a pool of funds invested on the employee’s benefit. As an employee, you may contribute part of your wages to the plan, too.

For example, a pension plan might offer a monthly benefit of 50% of your pay (based on an average of your pay over your last three years of service) if you retire at age 55 and have at least 10 years of service. … The pension could provide an income of 85% of your pay. More years usually mean more money.

A pension plan (also referred to as a defined benefit plan) is a retirement account that is sponsored and funded by your employer. … Over the years, your employer makes contributions on your behalf and promises to make you regular, predetermined payouts every month when you retire.