Corporate Pension Plan

Back in the days of Mad Men, everyone was talking about retirement. What a wonderful day when you could walk away from that corporate job and start living on your pension plan.

Pension plans have largely declined as a mode of compensation. But those lucky enough to obtain a corporate pension plan did so while working at a company for a long time.

The process works like this: The company agrees to incrementally compensate employees ("benefits, baby") by putting money into a retirement account known as a pension. Both companies and employees typically contribute to the pension. It gets invested in the stock market in one form or another, and compounds away with the market. These pensions are usually funded based on the employee’s length of tenure, the employee’s job, and the type of work performed. Like...the more senior you are, the more dough you make, so that 3% a year contribution or whatever the number is...grows.

Watch our videos on this one as it's a controversial topic, with many corporations under-funding pensions, and most governments massively doing the same. Bottom line: If you're counting on your government pension being there when you retire...um, well...Google "Uber driver."