Every month, Justin contributes 5 percent of his income and his employer contributes an additional 5 percent to guarantee that Justin will have a regular income when he retires. This is known as

Question

Quizplus · Accepted Answer

Justin's monthly contributions, along with his employer's contributions, are being set aside into a pension fund. This fund is designed to provide Justin with a regular income when he retires, making choice (D) the correct answer. Choices (A) and (B) are incorrect, as they do not accurately describe the situation. Social security (choice C) is a government-run program that provides retirement benefits to eligible individuals, but it is not the same as a pension fund. Retirement planning (choice E) is a broad term that encompasses various strategies for saving and investing for retirement, but it does not specifically refer to an employer-sponsored pension fund.

Every Month, Justin Contributes 5 Percent of His Income and His