Pension

Pension, regular payment received after retirement from employment because of age or disability, from the government under Social Security programs, or from private employers, or both. In the U.S. almost all large corporations provide pension plans for their employees, based on salary and length of service and financed either by the company alone or jointly by company and employee (contributory plans). There are individual pensions as well. Individual retirement accounts (IRA), offered by banks and other financial institutions, are accounts which are specially structured to help working individuals save money over a long period of time, with different types of tax shelters and special interest rates. Another type is the Keogh plan, which is similar to an IRA, but is used by self-employed people or business owners.

See also: Social security.