Pension is the term used when we refer to a retirement benefit. It can either be acquired by if you paid into a pension or if your employer paid your pension benefit while you are still working.
And be warned not to mistake it with some Social Security programs. They might look similar with each other, but S.S. programs are administered differently. To differentiate them, S.S. programs are government funded while the other one is privately funded.
Pensions have different types of scheme, like for example a personal pension. It can be availed by anyone, even as young as 18 years old, and benefits can be claimed anytime from age 55. Currently it is the most popular scheme to those who don’t have access to company pensions. To avail it, all you have to do is pay or contribute to providers or financial organizations, which are typically insurance companies, banks, etc.
It is available to anyone whose:
- Unemployed but has sufficient money to pay into a plan
- Employers does not offer any company pension
- Salary is not that big but desires to put up the amount they acquire from company pension
- Those who choose not to pay into a company pension even given the option.