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Which of the following statements about pension plans is true? Pension plans are designed to provide ___________.

A. Short-term financial assistance
B. Tax benefits only
C. Long-term income security in retirement
D. Limited investment options

1 Answer

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Final answer:

The correct statement about pension plans is that they provide long-term income security in retirement.

Step-by-step explanation:

Option C: Long-term income security in retirement is the correct statement about pension plans. Pensions are designed to provide a fixed income to retirees during their retirement years. This income is meant to provide financial security and support in their later years.

Example: When a worker retires, they may receive a monthly pension payment based on factors such as their years of service and salary. This payment continues for the rest of their life, ensuring a steady income source in retirement.

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