Pension

A pension is a fund into which 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 may be a "defined benefit plan" where a fixed sum is paid regularly to a person, or a "defined contribution plan" under which a fixed sum is invested and then becomes available at retirement age. Pensions should not be confused with severance pay; the former is usually paid in regular installments for life after retirement, while the latter is typically paid as a fixed amount after involuntary termination of employment prior to retirement.

The terms "retirement plan" and "superannuation" tend to refer to a pension granted upon retirement of the individual. Retirement plans may be set up by employers, insurance companies, the government or other institutions such as employer associations or trade unions. Called retirement plans in the United States, they are commonly known as pension schemes in the United Kingdom and Ireland and superannuation plans (or super) in Australia and New Zealand. Retirement pensions are typically in the form of a guaranteed life annuity, thus insuring against the risk of longevity.

Pension (lodging)

A pension (pronounced [pɑ̃ˈsjɔ̃]) is a type of guest house or boarding house. This term is typically used in Continental European countries, in areas of North Africa and the Middle East that formerly had large European expatriate populations, and in some parts of South America such as Brazil and Paraguay. Pensions can also be found in South Korea, Japan, and the Philippines.

In contrast to bed and breakfasts, more usual in the United States, pensions typically offer not only breakfast, but also lunch, dinner and sometimes even tea. Rather than paying for the room and each meal separately, guests select a plan which either comprises overnight accommodation, breakfast, lunch and dinner (full pension) or the preceding minus the lunch (half pension).

These small businesses may offer special rates for travellers staying longer than a week, may be located in historic buildings, can be family-run, and are generally cheaper than other lodgings, such as hotels, although they offer more limited services.