The pension system in the United States is a system that provides regular income to individuals after they retire from work. There are several types of pensions available in the United States, including:
Social Security: Social Security is a federally administered pension program that provides income to retired workers and their spouses. It is funded through payroll taxes paid by workers and employers.
Employer-sponsored pensions: Employer-sponsored pensions, also known as defined benefit plans, are pensions that are provided by an employer. They typically pay a fixed amount each month to the retiree based on their length of service and salary.
Individual retirement accounts (IRAs): IRAs are personal savings accounts that are designed for retirement. There are several types of IRAs, including traditional IRAs and Roth IRAs.
401(k) plans: 401(k) plans are employer-sponsored retirement savings plans that allow employees to contribute a portion of their salary to a tax-advantaged account.
Government pensions: Some government employees, such as teachers, police officers, and firefighters, may be eligible for government pensions.
Overall, the pension system in the United States is a combination of public and private programs that provide income to retired individuals. It is designed to help people maintain a comfortable standard of living after they stop working.