What Is a Term Pension?

Video Transcript

"This is financial adviser Patrick Munro, talking about what is the term pension. A Pension is known as a savings vehicle that was started when an individual was working. The individual made progressive payments in a savings vehicle, over a period of time with a goal in mind. The goal in mind was to build up a enough money in a period of usually a twenty year minimum. Many people work for the same company or governmental agency for twenty five years, that's the normal bench mark, that money is designed to be in a war chest, so to speak, so that when the individual retires then they have money there that they can draw in income to replace the check that they use to have when they were at work. That's why it's called a pension. And this is Patrick Munro, financial adviser, talking about the benefits of and the definition of pensions."