A pension plan is a type of retirement savings program that provides individuals with a steady income after they stop working. These plans are typically funded by employers, employees, or both, and they can be defined benefit plans, which guarantee a specific payout, or defined contribution plans, where the payout depends on the investment performance of the contributions made. Pension plans are designed to help individuals save for retirement, ensuring they have financial support in their later years. Many employers offer these plans as part of their benefits package, making it easier for employees to prepare for their future. Understanding the specifics of a pension plan can help individuals make informed decisions about their retirement savings.