Just like we save money to buy things we need, we also have to save money for when we’re older and no longer working. This is called a pension.
A pension is like a special savings account, it’s a way to make sure that once we retire, we still have money to live comfortably; since you won’t have a regular salary from your job. Retirement is when people stop working and enjoy their free time.
Investing in Your Future
When you have a job, a portion of the money you earn goes into your pension. This money is set aside in the pension, for your future, because they are a long-term savings plan. The money you put in is invested, which means it is able to grow. The more you save and the longer you work, the bigger your pension will be.
When you reach a certain age, usually around 65, you can then start using your pension money to support yourself during retirement. You can use your pension to pay for things like your home, food and fun activities.
In conclusion, a pension is a way for grown-ups to save money while they’re working so they can take care of themselves in the future. It’s like a special gift they give themselves to enjoy their golden years without having to worry about money.
