Pension plans are crucial financial tools designed to provide income in retirement, ensuring financial security during your golden years. Understanding how these plans work empowers you to make informed decisions about your future.

Pension plans, often sponsored by employers, involve regular contributions during your working years. These contributions are invested to grow over time, building a fund that will support you after retirement. There are two main types:

Defined Benefit Plans: These guarantee a specific benefit amount based on salary and years of service. Defined Contribution Plans: These involve contributions from both employer and employee, with the final payout depending on investment performance.