What is a pension designed to provide?

A pension is specifically designed to provide income post-retirement. It is a form of financial security for individuals after they have ceased working, ensuring they have a steady stream of income to support their living expenses during their retirement years. Pensions are typically funded by employers and are often based on factors such as salary history and years of service, allowing retirees to maintain a certain standard of living once they no longer receive a regular paycheck from employment.

While other options might be associated with benefits provided to employees during their working years, they do not align with the primary purpose of a pension, which is to serve as a source of income after retirement. Some organizations may offer salary increases or health insurance as part of their employee benefits package, and job security is usually addressed through other means. Nonetheless, the central aim of a pension is to ensure financial stability and support for individuals once they retire.