pension
PEN-shuhn
/ˈpɛn.ʃən/
A regular payment made during retirement from an investment fund created during a person's working life.
Refers specifically to retirement income earned through past employment or government programs.
The story behind the word. In ancient Rome, money was weighed out in silver or bronze on scales. The Latin verb 'pendere' meant 'to weigh', which became 'pensio' (a regular payment). By Anglo-Norman times, it referred to a payment made for past services.
Word relationships
- annuity: Annuity is a financial product bought from an insurance firm, not necessarily linked to employment.
- salary: Salary is earned during active employment, while a pension is paid after retirement.
Commonly confused with
- penance: Penance is punishment endured to show sorrow for wrongdoing.
Word family
- pensioner (noun): A person who receives a pension.
- pensionable (adjective): Qualifying for a pension.
Collocations
- pension plan
- draw a pension
- state pension
- pension fund
Idioms & expressions
- pension off
Example sentences
- "After forty years at the company, he was entitled to a comfortable monthly pension." Financial planning
- "The executive board agreed to pension off the senior advisors with full retirement benefits." Corporate policy
Memory hook
Pounds of silver weighed out on a scale for a loyal worker's retirement. Weighing out silver payments after work is done.
When not to use
Do not confuse with a regular current salary or a casual cash gift.
Fun facts
- In Continental Europe, a 'pension' can also refer to a small boarding house or bed-and-breakfast.
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