pension

American  

[pen-shuhn, pahn-syawn] / ˈpɛn ʃən, pɑ̃ˈsyɔ̃ /

noun

plural

pensions

1. a fixed amount, other than wages, paid at regular intervals to a person or to the person's surviving dependents in consideration of past services, age, merit, poverty, injury or loss sustained, etc..

   a retirement pension.

2. an allowance, annuity, or subsidy.

3. (in France and elsewhere in continental Europe)

   1. a boardinghouse or small hotel.

   2. room and board.

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verb (used with object)

1. to grant or pay a pension to.

2. to cause to retire on a pension (usually followed byoff ).

pension ¹ British  

/ pɑ̃sjɔ̃ /

noun

1. a relatively cheap boarding house

2. another name for full board

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pension ² British  

/ ˈpɛnʃən /

noun

1. a regular payment made by the state to people over a certain age to enable them to subsist without having to work

2. a regular payment made by an employer to former employees after they retire

3. a regular payment made to a retired person as the result of his or her contributions to a personal pension scheme

4. any regular payment made on charitable grounds, by way of patronage, or in recognition of merit, service, etc

   a pension paid to a disabled soldier

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verb

1. (tr) to grant a pension to

pension Cultural  

1. Payments made to a retired person either by the government or by a former employer.

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Other Word Forms

• nonpensionable adjective
• pensionable adjective
• pensionably adverb
• pensionless adjective
• unpensionable adjective
• unpensioned adjective
• unpensioning adjective
• well-pensioned adjective

Etymology

Origin of pension

First recorded in 1325–75; Middle English, from Old French pensïon, from Latin pēnsiōn-, stem of pēnsiō “measured weight,” hence, “payment, rent,” from pēns(us) “weighed” (past participle of pendere “to hang, weigh out, pay by weight”) + -iō -ion

Explanation

A pension is a regular payment, usually from a company you worked for, that allows you to survive without working after you retire. In used to be common for someone to spend their entire career at one company, and then retire at 65 and receive a pension: regular payments of enough money to live on in old age. Nowadays, not that many jobs offer pensions, and it's hard for companies that do to pay for them, which is why you're likely to hear this word when people are arguing about budget cuts. It's also a verb: if you pension your employee, you give them a pension. How nice of you!

Example Sentences

Teachers can retire at age 63 with a pension worth 85% of their final pay, plus free health benefits for life.

From The Wall Street Journal • Apr. 13, 2026

“But maybe you’re newly divorced with a special-needs kid and a teacher’s pension, and the adviser specializes in all three. That’s a thoughtful exception that makes sense.”

From MarketWatch • Apr. 10, 2026

Institutional investors such as public employee pension funds have begun to ask whether the sector deserves their money.

From Los Angeles Times • Apr. 10, 2026

Goldman’s letter said the firm is processing over $10 billion in institutional commitments to its direct lending funds, with money coming from insurance companies, banks and pension funds.

From Barron's • Apr. 8, 2026

“You wouldn’t take the pension back, would you? If you do, I’ll have no husband.”

From "Homeless Bird" by Gloria Whelan

Related Words

• allowance
• annuity
• grant
• payment
• premium
• retirement account
• reward
• social security
• subsidy