Pension Plan Definition

Below please find a definition of “Pension Plan”

Financial Analysis Training & Glossary TermsPension Plan: Typically, a pension plan is a retirement plan that an employee enrolls in with an employer and the employer makes a percentage of contribution for the future benefit of the employee. An employee can also transfer a part of his or her income towards retirement income. Upon retirement the employee can start receiving benefits from the pool of funds invested. A 401K plan is a very common example of a pension plan.

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