In this guide, we will answer the question of what is a pension plan and explore its definition, types, benefits, comparisons with other retirement savings options, and their role in retirement security.
A pension plan is a retirement benefit employers, or government entities provide workers. It is a long-term savings and investment vehicle designed to replace a portion of an individual's pre-retirement income.
The concept of pensions and retirement benefits dates back centuries, evolving to address the changing needs of workers and societies. The origins of pensions can be traced back to ancient civilizations.