What best describes a pension?

A pension is best described as a series of definitely determinable payments made after retirement. This means that when an individual retires, they receive regular payments from a pension plan, which are typically based on a formula that considers factors such as the employee's salary history and years of service. The payments are usually structured to provide a predictable income stream throughout the retirement years, which can help seniors manage their living expenses.

Pensions are often funded by both employer and employee contributions during the individual’s working years, and the amount received is set in advance, making it a stable source of income. This contrasts with other forms of retirement benefits that may vary or be one-time payments, emphasizing the reliability and consistency characteristic of pension distributions.