Pensioen

The term “pensioen” is Dutch for “pension.” It refers to a regular payment made to a person typically after retirement, which is intended to provide financial support during the retirement years. Pensions are often funded through contributions made by individuals during their working life, employers, or a combination of both. The payments can be structured in various ways, including defined benefit plans, where the amount received is predetermined based on salary and years of service, and defined contribution plans, where the amount received depends on the contributions made and the investment performance. Pensions can be an essential part of retirement planning, ensuring that individuals have a source of income once they stop working.