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What is a pension?

Updated: 4/26/2024
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Wiki User

16y ago

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A pension is a form of transfer payment, which is direct financial assitance to those who are no longer capable of working (after the age of retirement). A pension is given to those who work in both the public sector (government servants) and the private sector(not all private sector workers have a pension fund) for a given period of time. Thus if you have to work for 40 years to be eligable for the pension scheme and if you complete those 40 years then you will get a pension for the rest of your life.

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16y ago
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2w ago

A pension is a retirement plan that provides a fixed sum of money regularly to a retiree, typically funded by contributions from employers during the employee's working years. It serves as a source of income after a person retires.

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