A pension scheme is a financial plan designed to provide individuals with income after they retire from work. These schemes typically involve regular contributions made by employees, employers, or both, which are then invested to grow over time. The goal is to ensure that individuals have enough funds to support themselves when they are no longer earning a salary. There are various types of pension schemes, including defined benefit plans, where the payout is predetermined based on salary and years of service, and defined contribution plans, where the retirement income depends on the amount contributed and investment performance. Understanding these options is crucial for effective retirement planning.