A pension system is a program where individuals make regular contributions during their working years, and upon retirement, they receive regular payments to support their living expenses.
Related terms
Social Security: A government-run pension system in many countries that provides financial assistance to retired workers.
Defined Contribution Plan: A type of pension plan where the amount of money received in retirement is based on the individual's contributions and investment performance.
Annuity: A financial product that offers a series of regular payments for a specific period or for life after an initial lump sum payment.