"pension plan" vs "pension scheme"

Question

"pension plan" vs "pension scheme"

Both 'pension plan' and 'pension scheme' are correct and commonly used phrases in English to refer to a program that provides retirement benefits to employees. The choice between the two may depend on regional preferences or personal style, as they are interchangeable.

Last Updated: April 01, 2024

It is used to describe a specific retirement savings program offered by an employer to its employees.

Examples:

She enrolled in the company's pension plan as soon as she started working.
The pension plan includes contributions from both the employer and the employee.
Employees can choose to opt out of the pension plan if they prefer other retirement options.

Alternatives:

retirement plan
retirement scheme
superannuation plan
superannuation scheme
401(k) plan

It is used to describe a specific retirement savings program offered by an employer to its employees.

Examples:

The company introduced a new pension scheme to attract and retain top talent.
Employees can choose between different pension schemes based on their risk tolerance.
The pension scheme offers various investment options for retirement savings.

Alternatives:

retirement scheme
retirement plan
superannuation scheme
superannuation plan
401(k) scheme

Answer 1

pension plan

This phrase is correct and commonly used in English to refer to a program that provides retirement benefits to employees.

Answer 2

pension scheme

This phrase is correct and commonly used in English to refer to a program that provides retirement benefits to employees.