A pension is a financial arrangement that provides a regular income to individuals after they retire from work. It is typically funded through contributions made during an individual’s working life, either by the individual themselves, their employer, or both. The contributions are invested and accumulated over time, and upon retirement, the individual receives payments, which can be distributed as a lump sum or in regular installments. Pensions are designed to ensure financial security for retirees, allowing them to maintain their standard of living after they stop earning a salary. There are various types of pension plans, including defined benefit plans, which guarantee a specific payout upon retirement, and defined contribution plans, where the payout depends on the investment performance of the accumulated contributions. Overall, pensions play a crucial role in providing for individuals’ financial needs during their non-working years.
The government introduces significant increases in both contributory and non-contributory pensions, affecting retirees, people with disabilities, widows, orphans, and families. Eligibility adjustments may allow those previously excluded from minimum complimentary…