Pension

Saving and pension planning

A pension is a form of saving and investing one’s money. They are common in the United States and have been around for decades. Technically, the word “pension” means “payment to a retired person”, but typically this refers to an income that
comes from investments such as stocks, bonds, or certificates of deposit. Paying into a pension account lets you save on taxes as well.

Pensions differ between countries due to government regulations. For example, in the UK many pensions are state funded unless you choose to save privately for your retirement rather than relying on the national system which pays out at age 65 after 35 years of service. This can be done through Individual Savings Accounts (ISAs).

The government regulates pensions in the UK, with most being state funded unless you choose to save privately for your retirement rather than relying on the national system which pays out at age 65 after 35 years of service. This can be done through Individual Savings Accounts (ISAs). In contrast, pensions in the USA are typically provided from employer-based plans.

In America, many people rely on their 401k accounts for retirement savings. Employers often match a percentage of what an employee contributes – that means they’re investing a dollar for every one dollar put in by their employee!