What is an old-age pension?

Old-age pension or retirement pension is income for people who have retired from active employment, states Dictionary.com. The government, company retirement programs, annuities, or dividends from investments or savings may fund retirement pensions.

Most people qualify to receive maximum government retirement benefits when they reach the full retirement age of 66, according to the Social Security Administration. As of 2015, early retirement options start at age 62, but they have reduced monthly benefits at that point. Retirees may also wait until age 70 to draw retirement pensions to increase their benefits. The government bases retirement pensions on a person's earnings over their years of employment.