Social Security

Social Security is also referred to as a “Pension”

A pension 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 fund is usually maintained where an employee contributes a percentage of their monthly salary, to the fund called “pension contribution”. After the employment years when the employee retires, the government then pays back the employee each month on the basis of contribution and other factors.

Usually, pension funds are managed by governments or at least regulated by governments so employees do not end up losing all their retirement savings.

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