BANKING AFFAIRS

Detailed explanation-1: -A pension is a fixed retirement fund for an employee paid as a regular income at regular intervals during his post-retirement years. A pension is a fund where a sum of money is added by the employer, employee, or both. A pension is a testament to your retirement plan during your employment years.

Detailed explanation-2: -A monthly pension payment gives you a fixed amount every month over your whole life, so you don’t have to worry about changes in the stock market. In contrast, a lump-sum payout can give you the flexibility of choosing where to invest or save your money, and when and how much to withdraw.

Detailed explanation-3: -a regular income paid by a government or a financial organization to someone who no longer works, usually because of their age or health: comfortable/decent/generous pension They receive a generous pension, typically 75% of last pay drawn. pension plan/scheme Her new job offers a company pension scheme.

Detailed explanation-4: -Pension funds, which are also known as retirement funds, is a kind of savings scheme where you (as an employee) invest a small portion of your income/salary into a designated savings plan. The main objective of this plan is to get a steady flow of income after you complete your active years of service.

Detailed explanation-5: -Pension received from a former employer is taxable as ‘Salary’.