OLD AGE PENSIONS Meaning and
Definition
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Old age pensions refer to a form of financial support provided by the government or other institutions to individuals who have reached a certain age and are no longer able to work due to old age or infirmity. These pensions are designed to ensure a basic level of income and ensure the financial security and well-being for elderly individuals.
Old age pensions are typically based on a social insurance system or a pay-as-you-go scheme, where workers contribute a portion of their earnings during their working years towards the pension fund. The accumulated funds are then used to provide regular payments to retirees once they reach the eligible age for pension benefits.
The primary purpose of old age pensions is to alleviate poverty among elderly individuals and provide them with a source of income to cover their basic needs, such as housing, food, healthcare, and other necessities. The eligible age for pensions varies across countries and may be subject to certain criteria such as the number of years of contribution and the retirement age in the respective country.
Old age pensions have been implemented in various countries as a social welfare policy, considering the aging population and the need to provide a safety net for senior citizens. These programs aim to ensure that individuals can retire with dignity and financial independence, leading to a better quality of life during their advanced years.
