A pension is a retirement scheme where regular contributions are made during an individual's working career to provide periodic payments after retirement, distinct from severance pay, which is a fixed amount for involuntary termination. Pensions generally fall into two categories: defined benefit plans, which guarantee specific retirement payments, and defined contribution plans, where payments depend on the accumulated fund. Terminology varies globally—known as retirement plans in the US, pension schemes in the UK/Ireland, and superannuation in Australia/NZ—and they are typically set up by employers, governments, or unions as a form of tax-advantaged deferred compensation. These plans often include an insurance aspect, providing benefits to survivors or disabled beneficiaries, and can be self-funded, as seen with the iconic American 401(k). Governments also administer pensions, such as military pensions overseen by the US Department of Veterans Affairs, which may continue to be paid to a veteran's widow after death.