People generally talk about pension when they mean old-age pension. You get old-age pension when you leave working life because you have reached retirement age, become old enough. Old-age pension is paid through taxes to the government, by employers paying into pensions for their employees (compulsory) and through your own pension savings. Pension can be seen as deferred pay and old-age pensions systems often contain an insurance component. For example, by paying for the rest of your life even if you live longer than average or by paying to survivors after a death. There are also other types of pensions, such as sickness pension and disability pension.
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