Pension

High school (ages 12+)
People & Society

Name:

Date:

Step 1 · Read the article

Open the article and read it at the level above. Then answer the questions below in your own words.

https://smallwhale.org/articles/pension

1. What is the nature of pension?
2. What is the global terminology examples?
3. How do pensions help people when they are old?
4. What is the difference between a defined benefit and a defined contribution pension?

Write what each word means, using the article.

Do not copy the article. Write two things you learned, the way you would explain them to a friend.

Answers below are taken from the article’s stored facts, so they match what the student read.

1. What is the nature of pension?A form of deferred compensation providing income during retirement
2. What is the global terminology examples?Retirement plans (US), pension schemes (UK/Ireland), superannuation (Australia/New Zealand)
3. How do pensions help people when they are old?Pensions give people a steady income so they can buy food, clothes, and stay healthy even when they no longer work.
4. What is the difference between a defined benefit and a defined contribution pension?A defined benefit pension promises a set amount each month based on your salary and how long you worked, while a defined contribution pension gives you money that depends on how much was put in and how well the investments did.

Deferred Compensation: Payment for services rendered that is earned now but paid at a later date, typically in retirement.
Defined Benefit Plan (DB): A pension plan that guarantees a specific retirement income, with investment risk borne by the sponsor.
Defined Contribution Plan (DC): A pension plan where retirement benefits depend on contributions and investment growth, with risk borne by the individual.