Please ensure Javascript is enabled for purposes of website accessibility
Search
Accessibility Menu

What is a Pension?

By Robin Hartill, CFP – Updated Dec 16, 2024 at 1:46PM

Key Points

  • Pensions provide a fixed monthly income in retirement based on salary and service years.
  • Most companies now opt for 401(k) plans due to lower cost and reduced risk.
  • Pensions are insured by PBGC, ensuring benefits even if a company fails.
Key findings are powered by ChatGPT and based solely off the content from this article. Findings are reviewed by our editorial team. The author and editors take ultimate responsibility for the content.

Our Guides

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.