What is the Difference between a Pension and Social Security?
The difference between a pension and Social Security is quite radical, and while certain Social Security programs may resemble pensions, no part of Social Security is administered like a pension plan. Pensions are retirement benefits which are provided to people who have paid into a pension plan or who have been granted pension benefits by an employer. Social Security is a social insurance program in the United States which provides a wide number of services, one of which is taxpayer-funded benefits to the elderly. When people talk about “Social Security,” they are usually thinking of these benefits, and some people talk about a Social Security pension, further confusing the issue. Pensions may be funded in a variety of ways. Employees may pay into a pension plan as they work for an employer, or they may bank funds privately in a retirement account which will work like a pension. Pensions can also be funded by employers, unions, or the government. Depending on how the pension is organi
