Question

what are the concerns existing in the provision of pensions?

Answer 1

Pension is the amount of money that the company pays to their employees. This is mostly paid to those employees who have retired from the job that they were doing in the company. The money is a social security measure that has been taken up by the company so that it can support its employees after retirement. The provision of pension is however facing many concerns these days. The major concern in the provision of pensions are the problems of solvency and sustainability. This implies that there are not always sufficient amount of money available with the company to pay pension to its retired employees. Moreover, the number of employees who have become aged and retired from their jobs has increased exponentially over the last few years. Therefore, companies are finding it difficult to pay the required amount of money as pension.