pension plan
Definition
Noun: A pension plan is a formal, long-term savings and investment arrangement established by an employer, a union, or an individual to provide a person with a steady income after they retire from work.
Usage
A pension plan is a specific type of financial program. It is typically set up by an employer as a benefit for employees. The term refers to the overall system or scheme itself. - You enroll in or participate in a pension plan. - Employers offer, sponsor, or contribute to a pension plan. - The plan provides or pays out a pension upon retirement.
Examples
- The company offers a generous pension plan to all full-time employees.
- She reviewed her pension plan statement to see how much she had saved for retirement.
- One of the key benefits of the job is its defined-benefit pension plan.
- He is worried that his pension plan will not provide enough income when he stops working.
Advanced Usage
- Qualified Pension Plan: A plan that meets specific U.S. Internal Revenue Code requirements, offering tax advantages to both employers and employees.
- Fund a Pension Plan: This refers to the act of depositing money into the plan to ensure there are sufficient assets to pay future benefits.
Variants and Related Words
- Pension (n): The regular payment received by a retiree from a pension plan or government scheme.
- Retirement Plan (n): A broader term that can include pension plans, as well as individual savings accounts like 401(k)s and IRAs.
- Superannuation (n): A term commonly used in countries like Australia and the UK that is essentially synonymous with a pension plan.
Synonyms
- Retirement plan
- Superannuation scheme
Related Phrases
- Defined-Benefit Pension Plan: A traditional pension plan that promises a specified monthly benefit at retirement, often based on salary and years of service.
- Defined-Contribution Pension Plan: A pension plan where the employer, employee, or both make regular contributions to an individual account, and the retirement benefit depends on the account's investment performance.
Noun
-
a plan for setting aside money to be spent after retirement
Khám phá thêm
Các từ liên quan
