Definition

Noun: A pension account is a specific financial plan or arrangement designed for an individual to systematically save and invest money during their working years, with the primary purpose of providing funds to be spent after retirement.

Usage

A pension account is a formal savings vehicle. Contributions are often made regularly, and the accumulated funds are typically not accessed until the account holder reaches a designated retirement age. - She diligently contributes a portion of her salary to her pension account every month. - Understanding the investment options within your pension account is crucial for long-term growth.

Advanced Usage

• Qualified pension account: This term may refer to a pension account that meets specific government regulations (like those from the IRS in the U.S.), offering tax advantages to the contributor.
  • Contributions to a qualified pension account, such as a 401(k), can reduce your taxable income for the year.

Variants and Related Words

• Pension plan: A broader term for an employer-sponsored program that provides retirement income, which may be funded through a pension account.
• Retirement account: A more general term that includes pension accounts as well as other types like Individual Retirement Accounts (IRAs).
• Defined-contribution plan: A type of pension plan where the final benefit depends on contributions and investment performance, often held within a pension account.

Synonyms

• Retirement savings plan
• Superannuation account (common in countries like Australia and the UK)

Related Phrases

• To fund a pension account: The act of putting money into the account.
  • His goal is to fully fund his pension account by age 55.
• Pension account balance: The total amount of money currently in the account.
  • He checked his pension account balance online.

Noun

1. a plan for setting aside money to be spent after retirement