Pensioone

Pensioone, often translated as pension, refers to a retirement plan that provides a regular income to individuals after they stop working. These plans are typically established by employers or governments to ensure financial security for their employees or citizens during their later years. There are several types of pension schemes, including defined benefit plans, where the retirement income is predetermined based on factors like salary and years of service, and defined contribution plans, where the retirement income depends on the contributions made and their investment performance.

The primary goal of a pension is to replace a portion of an individual's pre-retirement income, allowing them to maintain a reasonable standard of living after their working life concludes. Pension funds are often managed by financial institutions and are subject to various regulations designed to protect the interests of beneficiaries. The funding of pensions can come from contributions made by both the employer and the employee, or solely from government revenue in the case of state pensions. The increasing lifespan and evolving economic conditions have led to ongoing discussions and reforms regarding the sustainability and adequacy of pension systems worldwide.