As an employee of Scotiabank, you have the opportunity to participate in the Scotiabank Pension Plan, which offers a range of benefits and options to help you plan for your future. A pension plan is a valuable tool in securing financial stability during retirement, and Scotiabank’s plan is designed to provide you with the resources you need to live comfortably in your golden years.
One of the major advantages of the Scotiabank Pension Plan is that it is a defined benefit plan, which means that the amount of your pension is determined by a formula based on factors such as your years of service, salary, and age. This ensures that you have a predictable and reliable source of income in retirement, no matter how the financial markets perform. With the uncertainty of the economy, having a pension plan that guarantees a certain level of income can provide you with peace of mind.
In addition to the defined benefit plan, Scotiabank also offers a range of investment options for employees who want to take a more active role in managing their retirement savings. You have the option to contribute to a group registered retirement savings plan (RRSP), which allows you to save additional funds for retirement on a tax-deferred basis. This can be a useful tool if you want to save more than the maximum allowed contribution to your pension plan.
It’s important to note that Scotiabank provides employees with access to professional financial advice and planning services to help you make the most of your pension plan. Whether you’re just starting your career or approaching retirement, it’s never too early or too late to start planning for your future. The Scotiabank Pension Plan is designed to provide you with the resources and support you need to make informed decisions and achieve your retirement goals.
Scotiabank Pension Plan
The Scotiabank Pension Plan is a retirement savings plan available to employees of Scotiabank. It is designed to help employees build a secure financial future for themselves and their families.
Benefits of the Pension Plan
The Pension Plan offers several benefits to employees:
- Contributions: Employees can contribute a portion of their salary to the plan on a pre-tax basis, allowing for tax savings.
- Employer Match: Scotiabank matches a percentage of the employee’s contributions. This helps to boost savings and increase the overall retirement nest egg.
- Investment Options: The Pension Plan offers a variety of investment options, allowing employees to choose investments that align with their risk tolerance and financial goals.
- Portability: In the event an employee leaves Scotiabank, they have the option to transfer their pension savings to another registered retirement savings plan.
- Income for Life: Upon retirement, employees can choose to receive a regular income stream from their pension savings. This provides financial security during retirement.
Options for Employees
Employees have several options when it comes to the Pension Plan:
- Contribution Levels: Employees can choose their contribution level, up to a certain limit set by the plan.
- Investment Strategy: Employees can select from various investment options based on their risk tolerance and long-term goals.
- Retirement Age: Employees can choose to retire as early as age 55 or as late as age 71, depending on their personal circumstances.
- Beneficiary Designation: Employees can designate a beneficiary to receive their pension benefits in the event of their death.
Overall, the Scotiabank Pension Plan provides employees with a valuable opportunity to save for retirement and secure their financial future.
Benefits of the Pension Plan
1. Financial Security for Employees
The pension plan offered by Scotiabank provides employees with a valuable tool for securing their financial future. By contributing to the pension plan, employees can build a nest egg that will provide them with a reliable income stream during their retirement years.
2. Employer Contributions
One of the key benefits of the Scotiabank pension plan is that the bank also makes contributions on behalf of its employees. This means that employees can enjoy the additional benefit of receiving free money from their employer, increasing the total value of their pension.
3. Investment Growth
The Scotiabank pension plan allows employees to invest their contributions, potentially earning significant investment returns over time. This means that employees have the opportunity to grow their retirement savings and potentially retire with a larger nest egg than if they relied solely on employee contributions.
4. Retirement Options
Scotiabank offers a range of retirement options to its employees, allowing them to choose the option that best suits their individual needs and preferences. Whether an employee prefers a lump sum payment, a lifetime annuity, or a combination of both, the pension plan provides flexibility and choice.
5. Tax Advantages
Contributions to the pension plan made by employees are tax deductible, meaning that employees can reduce their taxable income while saving for retirement. Additionally, the investment growth within the pension plan is tax-deferred, allowing employees to potentially grow their savings more efficiently.
Overall, the Scotiabank pension plan offers a range of benefits to employees, providing them with the opportunity to secure their financial future and enjoy a comfortable retirement.
Options for Employees
As part of the Scotiabank Pension Plan, employees have a range of options to choose from in order to make the most of their retirement savings.
One option available to employees is the defined benefit pension plan. With this plan, employees are guaranteed a specific retirement income based on their years of service and salary history. This provides employees with a stable source of income in retirement, making it a popular choice for many.
An alternative option is the defined contribution pension plan. Under this plan, employees contribute a portion of their salary to their retirement savings, and Scotiabank matches a percentage of these contributions. The benefit of this plan is that employees have more control over their investments and can choose how their funds are allocated.
In addition to these pension plans, Scotiabank offers other retirement savings options, such as registered retirement savings plans (RRSPs) and tax-free savings accounts (TFSAs). These accounts provide employees with additional flexibility in saving for retirement and can be tailored to their individual needs and goals.
Employees are encouraged to take advantage of the various options available through the Scotiabank Pension Plan. By maximizing their retirement savings and choosing the right plan for their needs, employees can ensure a secure and comfortable retirement.
Retirement Planning
Retirement planning is an essential part of any employee’s financial journey, especially when it comes to pension plans. It involves making strategic decisions about saving and investing to ensure a comfortable retirement.
For employees enrolled in the Scotiabank Pension Plan, retirement planning starts with understanding the benefits and options available to them. The plan aims to provide a stable and reliable income stream during retirement, giving employees peace of mind.
One of the key benefits of the pension plan is that it allows employees to contribute a portion of their salary towards their future retirement. These contributions are often matched by the employer, further boosting the retirement savings.
It’s important for employees to regularly review their retirement goals and adjust their savings accordingly. The Scotiabank Pension Plan provides tools and resources to help employees assess their retirement readiness and make informed decisions.
Employees should also consider their risk tolerance and investment preferences when planning for retirement. The Scotiabank Pension Plan offers a range of investment options to suit different needs, including conservative, balanced, and growth-oriented portfolios.
Retirement planning should also include considerations for other sources of income, such as government benefits or personal savings. Employees can use these additional funds to supplement their pension income and enhance their retirement lifestyle.
In conclusion, retirement planning plays a crucial role in ensuring a financially secure future for employees enrolled in the Scotiabank Pension Plan. By taking advantage of the benefits and options available, employees can take control of their retirement savings and enjoy a comfortable lifestyle in their golden years.
Investment Opportunities
As employees of Scotiabank, you have access to a variety of investment opportunities through the Scotiabank Pension Plan. These investment options provide you with a chance to grow your retirement savings and reach your financial goals.
One of the investment opportunities available to you is the option to invest in a variety of funds. The Scotiabank Pension Plan offers a range of funds with different risk profiles and potential returns. Whether you prefer a conservative approach or are comfortable taking on more risk, there is a fund that suits your investment style.
In addition to funds, the Scotiabank Pension Plan also provides the opportunity to invest in individual stocks and bonds. This allows you to create a personalized investment portfolio tailored to your specific financial goals and risk tolerance.
Furthermore, the Scotiabank Pension Plan offers the option to invest in mutual funds. Mutual funds pool money from multiple investors to invest in a diversified portfolio of assets. This can provide you with access to a wider range of investment opportunities that may not be available to individual investors.
It’s important to note that while the Scotiabank Pension Plan offers a variety of investment opportunities, it’s always advisable to consult with a financial advisor or expert before making any investment decisions. They can help you assess your financial goals, risk tolerance, and guide you in choosing the investment options that align with your needs.
By taking advantage of the investment opportunities available through the Scotiabank Pension Plan, you can maximize your retirement savings and take control of your financial future.
Defined Contribution vs. Defined Benefit
When it comes to pension plans, there are two main types: defined contribution and defined benefit. Scotiabank offers both options to its employees, allowing them to choose the plan that best suits their needs and preferences.
Defined Contribution Plan
A defined contribution plan is a pension plan where the employee and the employer contribute a certain percentage of the employee’s salary to a retirement account. These contributions are invested in various financial instruments, such as stocks, bonds, and mutual funds.
One of the main advantages of a defined contribution plan is that the employee has more control over their retirement savings. They can choose how their contributions are invested and have the potential for higher returns if the investments perform well. Additionally, the funds in a defined contribution plan can be portable, meaning that employees can take them with them if they leave Scotiabank.
However, the main disadvantage of a defined contribution plan is that there is no guaranteed income in retirement. The final benefit will depend on the performance of the investments and the amount contributed over the years.
Defined Benefit Plan
A defined benefit plan, on the other hand, is a pension plan where the employee is promised a specific amount of retirement income based on a formula that takes into account factors such as salary and years of service with Scotiabank. The employer is responsible for ensuring that the promised benefits are paid out.
The main advantage of a defined benefit plan is the security it provides. The employee knows exactly how much they will receive in retirement, regardless of the performance of the investments. This can provide peace of mind, especially in times of economic uncertainty.
However, defined benefit plans can be more expensive for employers to maintain, as they are responsible for ensuring that the promised benefits are paid out. They also do not offer the same level of control as defined contribution plans, as employees do not have the ability to choose how their contributions are invested.
In conclusion, Scotiabank offers both defined contribution and defined benefit pension plans to its employees. Each plan has its own advantages and disadvantages, and individuals should carefully consider their needs and preferences before choosing the plan that is right for them.
Calculating Pension Benefits
As a part of the Scotiabank Pension Plan, employees have the opportunity to receive retirement benefits based on their years of service and salary history. The formula for calculating pension benefits takes into account these two factors.
Firstly, the plan considers the employee’s years of service with the company. The longer an employee has been with Scotiabank, the higher their pension benefit will be. Each year of service is assigned a specific value or percentage, which is multiplied by the employee’s average salary over a certain period of time.
Secondly, the plan factors in the employee’s salary history. This is typically the average salary earned by the employee over a specific number of years, commonly referred to as the “pensionable earnings period.” The pension benefit is calculated based on the average salary during this period.
Overall, the formula used to calculate pension benefits takes into account both the employee’s years of service and salary history. By considering these two factors, the plan aims to provide employees with a fair and reasonable retirement benefit based on their contributions to the company.
It’s important to note that there may be additional factors or specific rules that apply to the Scotiabank Pension Plan. Employees are encouraged to review the details of the plan or consult with a pension plan administrator for more accurate and personalized information regarding their specific pension benefits.
Early Retirement Options
As part of the Scotiabank pension plan, employees have the option to retire early and begin receiving their pension benefits before reaching the standard retirement age. This can be a great opportunity for individuals who wish to enjoy their retirement years sooner.
There are two main early retirement options available to employees:
1. Early Retirement with Reduced Benefits
Employees can choose to retire early and start receiving their pension benefits, but the amount they receive will be reduced compared to what they would receive at the standard retirement age. The reduction in benefits is calculated based on the number of years before the standard retirement age the employee chooses to retire.
2. Bridge Benefit
The bridge benefit is an additional payment that employees can receive if they retire early and meet certain criteria. It is designed to bridge the gap between early retirement and the start of government benefits, such as the Canada Pension Plan (CPP) or Old Age Security (OAS). The bridge benefit is typically paid until the employee reaches the age of eligibility for government benefits.
It’s important for employees to carefully consider their financial situation and personal goals before deciding to retire early. While early retirement can offer more leisure time, it also means a shorter period of time to accumulate savings and potentially a lower monthly pension payment. Scotiabank provides resources and guidance to help employees make informed decisions about their retirement options.
Pension Plan Vesting
As part of the Scotiabank Pension Plan, employees have the opportunity to vest in their pension benefits. Vesting is a process that allows employees to become entitled to the company’s contributions to the pension plan, even if they leave the company before reaching retirement age.
When an employee is fully vested, it means that they have earned the right to receive the full value of the employer’s contributions to their pension plan. This is an important benefit, as it ensures that employees can retain the funds they have accumulated over their years of service.
In the case of Scotiabank, employees become fully vested in their pension benefits after a certain number of years of service. The specific vesting schedule may vary depending on the employee’s position and the terms of their employment contract.
It’s important for employees to understand the vesting requirements of the pension plan, as it can have a significant impact on their retirement savings. By ensuring they meet the necessary requirements, employees can take full advantage of the company’s contributions to their pension plan.
Employees should also keep in mind that even if they are not fully vested, they may still be entitled to a portion of the employer’s contributions to their pension plan, depending on the vesting schedule. This can be a valuable benefit that helps support employees’ financial well-being after leaving the company.
In conclusion, the Scotiabank Pension Plan offers employees the opportunity to vest in their pension benefits, ensuring that they can retain the funds they have accumulated over their years of service. By understanding the vesting requirements and taking full advantage of the company’s contributions, employees can secure their financial future in retirement.
Spousal and Survivor Benefits
As part of the pension plan offered by Scotiabank, employees have the option to select spousal and survivor benefits. These benefits are designed to provide financial security for spouses or surviving partners in the event of the employee’s death.
Under the spousal benefits option, employees can choose to receive a reduced pension income during retirement in order to provide a pension for their spouse or partner after their own death. This ensures that their loved one will continue to receive a steady income even after they are gone.
The survivor benefits option, on the other hand, allows employees to designate a specific person, such as a spouse or partner, to receive a portion of their pension income after their death. This can be beneficial for individuals who want to ensure that their loved one is financially protected in the event of their passing.
By offering these spousal and survivor benefits, Scotiabank acknowledges the importance of providing support and security not only to its employees but also to their loved ones. These benefits help to ensure that spouses and partners are taken care of even after the employee is no longer able to provide financial support.
It is important for employees to carefully consider these options and make an informed decision based on their individual circumstances. Scotiabank provides resources and support to help employees understand their choices and make the best decision for themselves and their loved ones.
In conclusion, the spousal and survivor benefits provided by Scotiabank’s pension plan offer employees the opportunity to ensure financial security for their spouses or partners. These benefits highlight the bank’s commitment to supporting its employees and their families both during their working years and beyond.
Portability of Pension
As part of Scotiabank’s pension plan, employees have the option to transfer their pension benefits if they leave the company before reaching retirement age. This portability feature allows individuals to continue building their retirement savings even if they change jobs.
When an employee leaves Scotiabank, they can choose to transfer the value of their pension plan to a new employer’s pension plan or into a registered retirement savings plan (RRSP). By transferring their pension benefits, individuals can maintain the tax-deferred status of their retirement savings and continue to benefit from any employer contributions.
Transferring to a New Employer’s Pension Plan
If an employee joins a new company that offers a pension plan, they can transfer their Scotiabank pension benefits to the new plan. This not only helps individuals to consolidate their retirement savings but also enables them to continue earning contributions from their new employer.
It’s important to note that the terms and conditions of the new employer’s pension plan will determine how the transferred funds are invested and when they can be accessed. Individuals should carefully review these details before making a decision.
Transferring to an RRSP
If an employee does not have the option to transfer their pension benefits to a new employer’s plan, they can choose to transfer the funds into an RRSP. This gives individuals more control over their retirement savings and allows them to select their own investment options.
By transferring their pension benefits into an RRSP, employees can continue to grow their retirement savings on a tax-deferred basis. They can also benefit from the flexibility of an RRSP, such as the ability to withdraw funds for a down payment on a home or to finance education.
It’s important to consider the tax implications of withdrawing funds from an RRSP before retirement. Individuals should consult a financial advisor to ensure they make the most appropriate decision for their individual circumstances.
Overall, the portability of Scotiabank’s pension plan provides employees with flexibility and options for their retirement savings. Whether transferring to a new employer’s pension plan or an RRSP, individuals can continue to build their nest egg and work towards a comfortable retirement.
Pension Plan Fees
As an employee of Scotiabank, it’s important to be aware of the fees associated with the pension plan. These fees may impact the growth of your pension and ultimately, your retirement savings.
Administration Fees
One type of fee that may be deducted from your pension contributions is an administration fee. This fee covers the cost of managing the pension plan, such as record-keeping, investment management, and communication with employees. The administration fee is typically a percentage of your pension contributions.
Investment Fees
Another fee that may be applicable to the pension plan is an investment fee. This fee is charged for the management and oversight of the plan’s investment portfolio. It covers the costs of hiring investment managers and research analysts to make investment decisions on behalf of the plan. The investment fee is usually a percentage of the plan’s assets.
It’s important to understand that these fees are necessary to ensure the proper administration and management of the pension plan. However, it’s still essential to review the fee structure and compare it to industry standards to ensure you are getting the best value for your retirement savings.
If you have any questions or concerns about the pension plan fees, it’s recommended to contact your HR representative or pension plan administrator for more information. They will be able to provide you with a detailed breakdown of the fees and explain how they impact your retirement savings.
Enrollment Process
Enrolling in the Scotiabank Pension Plan is a straightforward process that ensures employees can start planning for their retirement with ease. It is important for all employees to understand the steps involved in enrolling for the pension plan to make informed decisions about their future.
Step 1: Eligibility
To be eligible for the Scotiabank Pension Plan, employees must meet certain criteria. This includes being a permanent employee of Scotiabank and having reached the age of 18. Part-time employees may also be eligible based on specific criteria.
Step 2: Enrollment
Once an employee is eligible, they can enroll in the pension plan. This can be done by completing the enrollment form, which can be obtained from the Human Resources department. The form requires personal and financial information to ensure accurate record-keeping and contributions.
Employees may also have the option to enroll in the pension plan during their onboarding process when joining Scotiabank. This can be discussed with the Human Resources department or the designated onboarding team.
Step 3: Contribution Options
Upon enrolling in the pension plan, employees will have the opportunity to select their contribution options. This includes deciding on the percentage of their salary to contribute towards the plan.
It is important for employees to carefully consider their contribution options, taking into account their current financial situation and long-term retirement goals. Scotiabank provides resources and support to employees to help them make informed decisions about their contributions.
Contributions to the pension plan are deducted automatically from the employee’s salary and are tax-deductible, providing additional benefits for employees.
Once the enrollment process is complete, employees can access their pension plan information online and make changes to their contribution options, beneficiaries, and other plan details as needed throughout their employment with Scotiabank.
Enrolling in the Scotiabank Pension Plan is an important step towards securing a financially stable retirement. By understanding the enrollment process and making informed decisions, employees can take advantage of the benefits and options offered by the pension plan.
Pension Plan Tax Considerations
When it comes to planning for retirement, employees of Scotiabank should be aware of the tax implications associated with the company’s pension plan. Understanding the tax considerations can help employees make informed decisions about their retirement savings.
Contributions: Throughout their career, employees may make contributions to their pension plan. These contributions are usually made on a pre-tax basis, which means that the money is deducted from an employee’s salary before taxes are calculated. This can provide tax benefits as it lowers an employee’s taxable income.
Maximum contribution limits: It’s important for employees to be aware of the maximum contribution limits set by the government. Contributing more than the allowed amount can result in tax penalties. Employees should consult with a financial advisor or the plan administrator to ensure they are contributing within the allowable limits.
Tax-deferred growth: One advantage of a pension plan is the tax-deferred growth on investments. While funds are invested within the plan, employees do not pay taxes on any gains or income generated. Taxes are only paid when funds are withdrawn from the plan during retirement.
Income tax on withdrawals: Once employees reach retirement age and start receiving pension payments, these payments are considered taxable income. Employees should plan for the potential tax liability associated with their pension payments and consult with a tax professional to understand the implications.
Early withdrawals: Withdrawing funds from a pension plan before reaching retirement age can have significant tax consequences. In addition to being subject to income tax, early withdrawals may also be subject to additional penalties imposed by the government. It’s important for employees to weigh the benefits and risks before making any early withdrawals.
Overall, employees should take the time to understand the tax considerations associated with the Scotiabank pension plan. Consulting with a financial advisor or tax professional can help employees make the most of their pension contributions and minimize any potential tax liabilities.
Pension Plan Rollovers
A pension plan rollover is an option for employees of Scotiabank to transfer funds from their Scotiabank pension plan to another qualified retirement account. This allows employees to continue investing in their retirement savings while taking advantage of the tax benefits offered by the new account.
Why Consider a Pension Plan Rollover?
There are several reasons why employees may choose to rollover their pension plan:
- Flexibility: By rolling over their funds to another qualified retirement account, employees have more control over their investment choices and can tailor their portfolio to their specific needs and risk tolerance.
- Tax Advantages: Depending on the type of retirement account chosen for the rollover, employees may be able to defer taxes on their retirement savings, potentially reducing their tax liability.
- Consolidation: Rollovers allow employees to consolidate their retirement savings in one account, making it easier to manage and track their investments.
- Portability: If an employee leaves Scotiabank, they can rollover their pension plan to a new retirement account, ensuring their savings continue to grow even if they change jobs.
How to Initiate a Pension Plan Rollover
To initiate a pension plan rollover, employees should follow these steps:
- Research Retirement Account Options: Employees should research different retirement account options, such as Individual Retirement Accounts (IRAs) or employer-sponsored 401(k) plans, to determine which account best suits their needs.
- Contact the New Retirement Account Provider: Once employees have selected a retirement account provider, they should contact them directly to inquire about their rollover process and any requirements or forms that need to be completed.
- Complete the Rollover Process: Employees will need to complete the necessary paperwork and provide any requested information to the new retirement account provider. This may include information about their Scotiabank pension plan and the funds they wish to rollover.
- Monitor the Rollover: It is important for employees to track the progress of their rollover to ensure that the funds are transferred successfully and in a timely manner. They should also review their investment options in the new account and make any necessary adjustments.
By understanding the benefits and process of pension plan rollovers, employees at Scotiabank can make informed decisions about their retirement savings and take steps to maximize their financial security in the future.
Pension Plan Payout Options
As part of the Scotiabank Pension Plan, employees have a variety of options when it comes to receiving their pension benefits. These options depend on the individual’s needs and preferences, and can provide flexibility in how the pension is distributed.
Lump Sum Payment
One option available to employees is a lump sum payment. With this option, the entire pension benefit is paid out at once in a single payment. This can be beneficial for individuals who prefer to have a large amount of money upfront or who have other financial obligations they wish to address.
Structured Payments
Another option is structured payments, also known as an annuity. With this option, the pension benefit is paid out over a specific period of time, providing a steady income stream. This can be advantageous for individuals who prefer a stable income during retirement and may not have other sources of income.
Employees can choose from various structured payment options, such as receiving payments for a fixed number of years or receiving payments for the rest of their life. The amount of each payment is determined based on factors such as the employee’s age, the size of the pension benefit, and the length of the payment period.
It’s important for employees to carefully consider their financial situation and long-term goals when selecting a pension plan payout option. Scotiabank provides resources and guidance to help employees make an informed decision that aligns with their individual needs and circumstances.
Pension Plan Communication and Education
At Scotiabank, we believe in providing our employees with the necessary information and education to make informed decisions about their pension plan.
Regular updates and communication
We understand the importance of keeping our employees informed about any changes or updates to the pension plan. That’s why we regularly communicate with our employees through various channels, including email, online portals, and informational sessions.
Through these communications, employees can stay updated on any changes to the plan, such as contribution amounts, investment options, and retirement age requirements. This ensures that employees have the most accurate and up-to-date information regarding their pension benefits.
Education and resources
We also provide comprehensive education and resources to help employees understand their pension plan and how to make the most of it. This includes:
- Workshops and seminars: We offer workshops and seminars led by financial experts who provide guidance and answer any questions employees may have about their pension plan. These sessions cover topics such as investment strategies, retirement planning, and the importance of diversification.
- Online resources: Our online platforms provide employees with access to a wealth of resources, including retirement calculators, investment guides, and educational videos. These resources are available 24/7, allowing employees to learn at their own pace and revisit information whenever necessary.
- One-on-one consultations: For employees who prefer a more personalized approach, we offer one-on-one consultations with our pension specialists. During these consultations, employees can discuss their specific financial goals and receive tailored advice on how to maximize their pension benefits.
By providing regular updates, clear communication, and comprehensive education and resources, we strive to empower our employees to make informed decisions and effectively plan for their retirement through our pension plan.
Q&A:
What is the Scotiabank Pension Plan?
The Scotiabank Pension Plan is a retirement savings plan offered to employees of Scotiabank. It helps employees save and invest for their retirement.
Who is eligible for the Scotiabank Pension Plan?
All regular full-time and part-time employees of Scotiabank are eligible to participate in the Scotiabank Pension Plan.
What are the benefits of the Scotiabank Pension Plan?
The Scotiabank Pension Plan offers several benefits, including employer contributions, tax advantages, and the option to customize your investment strategy.
How much do employees contribute to the Scotiabank Pension Plan?
Employees can contribute up to a certain percentage of their annual salary to the Scotiabank Pension Plan. The exact contribution amount depends on the employee’s age and employment status.
What happens to the Scotiabank Pension Plan if an employee leaves the company?
If an employee leaves Scotiabank, they can choose to transfer their pension assets to another registered retirement savings plan or locked-in retirement account, or they can leave the assets in the Scotiabank Pension Plan until they reach retirement age.
What is the Scotiabank Pension Plan?
The Scotiabank Pension Plan is a retirement savings plan offered by Scotiabank to its employees. It provides a way for employees to save for their future and receive income during retirement.