Pension
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A retirement plan that provides regular income payments after retirement, funded by employer contributions, employee contributions, or both, with benefits based on salary and years of service.
## Pension
A pension (defined-benefit plan) promises a specific retirement income, typically calculated from years of service and final salary.
### Defined Benefit vs. Defined Contribution
| Feature | Defined Benefit (Pension) | Defined Contribution (401k/DC) |
|---------|--------------------------|-------------------------------|
| Risk bearer | Employer | Employee |
| Benefit | Guaranteed income | Depends on investment returns |
| Formula | Years × Accrual Rate × Final Salary | Contributions + Growth |
| Portability | Limited | Portable |
### Global Pension Systems
| Country | System |
|---------|--------|
| UK | State Pension + Workplace auto-enrolment (DC) |
| Germany | Gesetzliche Rente (statutory) + Betriebsrente (occupational) |
| Japan | Kokumin Nenkin + Kosei Nenkin |
| Australia | Superannuation (11.5% DC, mandatory) |
| Netherlands | AOW (state) + Occupational DB/DC |
### Trend
Private-sector defined-benefit pensions have largely been replaced by defined-contribution plans in the US and UK. Public-sector pensions remain common.