Retirement is a time that many people look forward to, as it marks the end of a long and successful career. However, with the rise in life expectancy and increasing costs of living, it’s more important than ever to plan for retirement and ensure financial stability during these years. One important aspect of retirement planning is understanding the different types of pensions available, as they can provide a steady stream of income during your golden years.

The most common type of pension is an employer-sponsored plan, such as a 401(k) or pension plan. These plans allow employees to contribute a portion of their income pre-tax, and many employers will match a certain percentage of these contributions. This can be a great way to save for retirement, as it offers tax benefits and potential employer contributions. However, not all employers offer these types of plans, and they may come with restrictions on when and how funds can be withdrawn.

Individual retirement accounts (IRAs) are another popular option for retirement savings. These accounts can be opened by anyone, regardless of employment status, and offer various tax advantages depending on the type of IRA. Traditional IRAs allow for tax-deferred contributions, while Roth IRAs offer tax-free withdrawals in retirement. It’s important to note that IRAs have contribution limits and specific rules for withdrawals, so it’s crucial to research and understand these before opening an