Pension Definition, Usage & Retirement Planning

Meaning 1：retirement income (pension)

pension 🔊

/ˈpenʃn/

Money you get every month after you stop working, from money you and your boss saved before.

Pension definition illustrated by a happy retiree reviewing a monthly pension deposit statement at home

retirement income 🔊

➕

/rɪˈtaɪərmənt ˈɪnkʌm/

A regular payment made by the state or a former employer to a person who has retired from work.

📁 Category：Social Economy 🔖 Level：Intermediate

📘 Details & Usage

📖 Root Explanation

From Latin 'pensio' (payment), through French 'pension'. The core idea relates to 'payment' or 'installment'.

💡 Mnemonic

Think: A PENsion is money you use to write (plan) your retirement SION (version of life).

📖 Example

After retiring, my grandfather uses his pension to travel and enjoy his hobbies. 🔊 Upon leaving the workforce, my grandfather utilizes his regular retirement payments to fund his travels and leisure activities.

🔗 Collocations

receive a pension – To get regular payments after retirement.

live on a pension – To depend on retirement income for daily living expenses.

pension plan – A formal arrangement for saving money for retirement.

🔄 Synonyms

annuity (n.) – A fixed sum of money paid to someone each year, typically for the rest of their life.

superannuation (n.) – A pension paid to a retired person who has contributed to a fund during their working life (common in Australia/NZ).

retirement benefit (n.) – A general term for financial support provided after retirement.

🚫 Antonyms

salary (n.) – A fixed regular payment, typically paid on a monthly basis, made by an employer to an employee.

wage (n.) – A fixed regular payment earned for work or services, typically paid on a daily or weekly basis.

🌱 Derivatives

pensioner (n.) – A person who receives a pension.

pensionable (adj.) – Entitling someone to or qualifying for a pension.

📖 Cultural Story

The word originates from Latin 'pensio', meaning 'payment', itself from 'pendere' (to weigh, to pay). It entered English via French. In modern Western culture, state and private pensions are fundamental to retirement planning, forming a key part of the social contract and welfare state, particularly prominent in discussions in Scandinavian and European social models.