pension

Vocabulary Word

Definition

'Pension' is regular income given to someone after they retire. This income is usually a part of an arrangement where either the person or their employer has been contributing to a pension fund during their working years.

Examples in Different Contexts

In corporate finance, managing 'pension' funds effectively is paramount for employee satisfaction and retention. An HR manager might state, 'Offering a robust pension plan is central to our employee benefits package, ensuring long-term financial security for our staff.'

Practice Scenarios

Accounting

Scenario:

I have been looking at our long-term liabilities, considering the impact on our financial status. How can we minimize the risk associated with pensions?

Response:

Consistent audits and understanding of regulation changes can help manage potential pension liabilities.

Investment

Scenario:

I have been considering various retirement strategies. Do you think investment in stocks can help fortify my pension income?

Response:

Investing in stocks can indeed help boost your pension income, but it’s important to consider the potential risks and diversify your investment portfolio.