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Pension
A pension is a regular payment received after retirement, either from a government scheme, an employer plan or a personal plan such as the NPS. Defined-benefit pensions promise a set amount; defined-contribution plans depend on what was saved and how it grew.
Why It Matters
Most Indians in the private sector must build their own pension through savings.
In India
Central government employees hired before 2004 receive a guaranteed pension, while those hired after are mostly covered by the NPS.