A pension plan is a retirement plan that is funded by an employer on behalf of its employees. It provides a steady income to retired employees based on their years of service and salary history.

A pension plan can help maximize retirement savings by providing a guaranteed income stream in retirement, which can supplement other retirement savings such as 401(k) plans or IRAs. It also helps reduce the risk of outliving your savings.

There are two main types of pension plans: defined benefit plans and defined contribution plans. Defined benefit plans provide a specific benefit amount upon retirement, while defined contribution plans allow employees to contribute to their retirement savings and receive a payout based on the contributions and investment returns.

To maximize your pension plan benefits, it’s important to understand the terms of your plan and make full use of any matching contributions from your employer. You should also consider contributing the maximum amount allowed by the plan and reviewing your investment options regularly.