Pensions

The employer gives pensions to employees after he has retired. It is an award for years of service given to the employer. Pension gives social security to the employee. Such pension can be used by the employee for his retirement life or for starting a new business etc. The day from which the employee joins the organization till his retirement, monthly or weekly contributions are made to the pensions fund. The employee contributes a part of it & rest is the employer's contribution. It is actually an investment one makes for after retirement life. hence most of the times the pension we talk about is retirement pension or the old age pension, where people make small savings every month so that they get a fixed sum of money every month when they get old. They can receive such money in lump sum as well. The pension calculator decides about the contribution to be made every month into such fund.