What is Pension (Individual Retirement Plan)?

A pension, individual retirement plan, or individual pension plan, is an amount of money that is recurringly deposited into an individual's account — often via an individual retirement account (IRA) — through their employer, often over many years for their retirement savings. Pension plans vary greatly in nature, but are typically made in the form of regular, equal monthly payments and begin at a specific age (usually 65) after the individual chooses to stop working indefinitely.