Keyword Analysis & Research: pension payments definition

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What is a pension and how does it work?

A pension plan is a financial arrangement that allows individuals to continue receiving some type of regular income even after they are no longer active in the workforce. Pensions are often used as retirement plans, although it is also possible to receive a pension based on disability or other circumstances.

How does a pension work after retirement?

A pension is a method of financing retirement for workers. Workers pay a percentage of their salary towards the pension each paycheck. This is typically three to five percent per paycheck. In turn, the company the employee works for will help the employee finance his retirement.

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