A pension is a type of retirement plan that provides individuals with a steady income after they stop working. Typically, employers or employees contribute money to the pension fund during the employee's working years. When the employee retires, they receive regular payments from this fund, helping them maintain their lifestyle without a paycheck. There are different types of pensions, such as defined benefit plans, which guarantee a specific payout, and defined contribution plans, where the payout depends on the amount contributed and investment performance. Pensions are an important part of financial planning, ensuring that people can enjoy their retirement years comfortably.