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A pension (, from Latin pensiō, "payment") is a fund into which a sum of money is added during an employee's employment years and from which payments are drawn to support the person's retirement from work in the form of periodic payments. A pension may be a "defined benefit plan", where a fixed sum is paid regularly to a person, or a "defined contribution plan", under which a fixed sum is invested that then becomes available at retirement age. Pensions should not be confused with severance pay; the former is usually paid in regular installments for life after retirement, while the latter is typically paid as a fixed amount after involuntary termination of employment prior to retirement.
The terms "retirement plan" and "superannuation" tend to refer to a pension granted upon retirement of the individual. Retirement plans may be set up by employers, insurance companies, the government, or other institutions such as employer associations or trade unions. Called retirement plans in the United States, they are commonly known as pension schemes in the United Kingdom and Ireland and superannuation plans (or super) in Australia and New Zealand. Retirement pensions are typically in the form of a guaranteed life annuity, thus insuring against the risk of longevity.
A pension created by an employer for the benefit of an employee is commonly referred to as an occupational or employer pension. Labor unions, the government, or other organizations may also fund pensions. Occupational pensions are a form of deferred compensation, usually advantageous to employee and employer for tax reasons. Many pensions also contain an additional insurance aspect, since they often will pay benefits to survivors or disabled beneficiaries. Other vehicles (certain lottery payouts, for example, or an annuity) may provide a similar stream of payments.
The common use of the term pension is to describe the payments a person receives upon retirement, usually under pre-determined legal or contractual terms. A recipient of a retirement pension is known as a pensioner or retiree.

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  1. J

    QLD Will a small inheritance affect my pension?

    HI, I am investigating for my 77-year-old mum. She is about to receive a sum of $25k from inheritance and I am wondering how this might impact her aged pension payments. She does not own any property and is single. She has approx. $30k in her bank already. Many thanks.
  2. R

    NSW Fraudulent withdrawal of pension fund(superannuation)

    Hello My separated husband passed away last year. He worked for the US firm, and he retired in 2018. Before his retirement we co-signed the payment arrangement of his pension payment and it legally requires my agreement to change or withdraw the funds. Additionally I am the beneficiary, and...
  3. S

    NSW Fine for driving an unregistered vehicle - Aged pension

    Good afternoon, Hoping to get some advice please. We recently received a fine for driving an unregistered vehicle however the registration renewal notice that we received at the time from service NSW was of $0 value as we have a valid concession card. At the time of receiving the renewal...
  4. M

    NSW partner visa effect on my pension

    Can anybody explain the effect on my pension of my overseas partner coming to australia on a partner visa will her overseas pension/income be combined with my pension for income assessment ?
  5. E

    How does an inheritance affect a disability pension?

    Hi! My nephew (who is on a disability pension) may be receiving a lump sum via an inheritance. From $50-100k. He currently has a mortgage & that money will go directly to help paying it off. Can he still legally collect his pension, or must he live off this inheritance? He only has the one...
  6. H

    VIC .

    What happens to a persons belongings if they have no next of kin or a will, if they committed suicide? They don’t own property, live on govt. pension and are estranged from their blood relations?
  7. F

    LEGAL please Child Support Assessment - TAXABLE INCOME

    Can CSA take my Disability Support Pension as "taxable" income into calculation for care payments ? My understanding was cannot as not taxable income - and ONLY can if you’re Age Pension age. Please I need legal on this, and perhaps link to pdf of website.