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What is Pension?
A pension is an arrangement to provide people with an income when they are no longer earning a regular income from employment. It is a tax deferred savings vehicle that allows for the tax-free accumulation of a fund for later use as a retirement income.
Retirement plans may be set up by employers, insurance companies, the government or other institutions such as employer associations or trade unions. Retirement pensions are typically in the form of a guaranteed life annuity, thus insuring against the risk of longevity.
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