As individuals reach retirement age, it is crucial for them to have a steady source of income to sustain their quality of life. This is where pension schemes come into play. In the United States, there are various government pension schemes in place to provide financial support for older citizens. These schemes ensure that seniors have a stable income after they retire.
One of the main government pension schemes available for older citizens is Social Security. This scheme is administered by the Social Security Administration and provides a monthly income to retirees, disabled individuals, and their dependents. The amount of social security benefit a person receives is based on their work history and the number of years they have contributed to the social security program.
Another popular scheme is the Federal Employees Retirement System (FERS), which is specifically for federal employees. This pension system has three components: Basic Benefit Plan, Social Security, and the Thrift Savings Plan. The Basic Benefit Plan provides a monthly annuity based on years of service and average salary. The Social Security component is the same as the one offered to non-federal employees. Lastly, the Thrift Savings Plan allows employees to save for their retirement through tax-deferred investments.
Older citizens who have worked in state and local government jobs may be eligible for pensions through their respective pension systems. The majority of these systems have a defined benefit plan,