OLD AGE PENSION Meaning and
Definition
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Old age pension refers to a financial assistance program provided by the government or private organizations, aimed at providing financial support to individuals who have reached a certain age and are no longer earning a regular income due to retirement. It is a form of retirement income security designed to meet the basic needs and cover the living expenses of elderly individuals.
Old age pensions are typically available to individuals who have reached the eligible age determined by the respective country or organization. This age requirement may vary between countries, ranging from 60 to 75 years, and can be subject to certain criteria such as contributions to the program or citizenship status.
The purpose of an old age pension is to ensure a minimum standard of living for elderly individuals who may not have sufficient savings or other sources of income to support themselves during their old age. The amount of pension received is often determined based on factors such as the individual's earnings history, the number of years contributed to the pension scheme, and the average income in the country.
Old age pensions are typically funded through a combination of government funds, contributions from the workforce, and investment returns. The pension payment is usually made on a regular basis, such as monthly or quarterly, and the amount received may be adjusted periodically to account for inflation or changes in the cost of living.
In summary, an old age pension is a financial benefit provided to elderly individuals who have retired and are in need of financial support during their old age.
