We often talk about retirement and pensions as though they’re the same thing. When we retire, we receive a pension, and we become pensioners. But a pension has a specific meaning. It refers to a particularly kind of retirement plan. An employer makes contributions to a pool of funds. It invests the funds for the company’s employees and uses those funds to pay their pensions.
A pension can also allow employees to make their own contributions, but the key part of a pension is that it’s the responsibility of the employer. The worker doesn’t have to worry about the future. They can focus on their work, knowing that their retirement is taken care of. They’ll receive a salary for as long as they work. And when they’ve finished working, they’ll receive a pension for the rest of their life….