Retirement pension is a form of monetary support that is provided by the employers to the employees after they retire from service. If you are an employee of a government organization, you will be entitled to various pension plans. In addition, almost all private companies also offer various retirement pension benefits. Get the benefits of various pension plans and enjoy a secure and comfortable retired life.
In a broader sense, the term retirement pension is a type of retirement benefit plan which is offered by employers, government, insurance companies, trade unions, employer associations and other institutions. The pension that is made by the employer for the benefits of the employee is known as employer or occupational pension. A number of pensions also include insurance policies. You can choose a nominee who is entitled to the benefits in case of your death. The recipient of the retirement pension is referred to as a retiree or pensioner.
Usually, retirement pension can be divided into 3 types:
Employment-based pensions: This is a type of monetary income plan that is offered so that you have a steady income even after you retire. In this retirement pension plan, both the employer and the employee contribute money during the tenure of employment to get assured benefits after retirement.
Social / state pensions: A number of states create funds for retired citizens. You need to pay some amount throughout your tenure of service and get the benefits at a later stage. Social Security is a good example of this type of retirement plan.
Disability pensions: These are monetary rewards and grant that are given if some employee becomes disabled. The grant is normally given to a close family member of the employee.