Pension
Definition
- A form of retirement savings plan, often tax exempt, where an employer or employee makes contributions towards an individual's eventual retirement. Some pension plans are privately managed by an employer and offered as an employment benefit, while others are run by the government, such as the Canada Pension Plan (CPP) or Old Age Security (OAS).
Synonyms
pension fund, pension scheme, retirement pension, retirement plan
Alternate Spellings
retiree, super, pensioner, superannuation
Related Terms and Acronyms
- Annuity — Definition,
- A regular periodic payment made by an insurance company to a policyholder for a specified period of time.
- A financial instrument that disperses a number of payments over a set period of time.
- Canada Pension Plan (CPP) — Acronym, Canada, Important,
- A public pension plan administrated by the Canadian government.
- Old Age Security (OAS) — Acronym, Important,
- A Canadian pension plan for eligible Canadians over the age of 65.
- Registered Retirement Savings Plan (RRSP) — Acronym, Canada, Very Important,
- A savings plan introduced by the federal government to encourage Canadians to save money for retirement. The investment and the interest earned on it is sheltered: it will not be taxed as long as it is left in the plan.
➥ Tax deferred investment contribution used to reduce income tax. - Superannuation — Definition,
- A retirement plan used in Australia.
- Tax-Free Savings Account (TFSA) — Acronym, Canada, Important,
- A savings account for Canadians where income earned is not taxed.
