A pension is a fund or pay-as-you-go scheme into which amounts are paid regularly during an individual's working career, and from which periodic payments are made to support that person's retirement from work. As an institution a pension system may take the form of a defined benefit plan, where set periodic payments are made in retirement and contributions are adjusted to support them, or a defined contribution plan, under which set amounts are paid in during working life and retirement payments are whatever the accumulated fund can afford. This description is adapted from Wikipedia contributors under CC BY-SA 4.0; changes were made. https://creativecommons.org/licenses/by-sa/4.0/
Facts
Institution TypeEconomic institution: a fund or pay-as-you-go scheme into which contributions are paid regularly during a working career, from which periodic payments support retirement. 1 Emergence PeriodAugustus Caesar introduced one of the first recognisable pension schemes in history through his military treasury during his reign from 27 BC to AD 14; Germany became the first country to introduce a universal employee pension program under Otto von Bismarck's Old Age and Disability Insurance Bill, enacted in 1889. 1 Sources
1. Pension (Wikipedia)
Wikimedia FoundationLead section
A pension is a fund or pay-as-you-go scheme into which amounts are paid regularly during an individual's working career, and from which periodic payments are made to support the person's retirement from work.
History section
Augustus Caesar (63 BC-AD 14) introduced one of the first recognisable pension schemes in history with his military treasury.
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