A pension is basically a long-term savings plan that also comes with tax breaks, as employees are generally allowed to write off tax against a pension. A pension is designed to provide a steady income to retired persons. Many developed economies and some emerging economies provide a state pension, and many people also try to provide themselves with a private pension also.
Although pensions were often provided by employers up until the 1980s, there has been a shift towards defined-contribution benefits where employees themselves provide the funding.
Banks can offer pensions as a standalone service or as part of a wealth management services.