A pension is a financial plan that provides individuals with regular income after they retire from work. It is typically funded by contributions made during a person's working years, either by the individual, their employer, or both. The amount received usually depends on factors like salary history and years of service. There are different types of pensions, including defined benefit plans, which guarantee a specific payout, and defined contribution plans, where the payout depends on investment performance. Pensions are designed to help retirees maintain their standard of living and cover essential expenses in their later years.