| A: | Well that was an interesting documentary! |
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| B: | For sure! I didn't really understand some ofthe technical jargon they used inthe film when they talked about social security in the US. |
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| A: | Like what? |
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| B: | Well, they mentioned how people put away money in something called a 401K? |
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| A: | Yeah, I know it sounds weird, but a 401k is a type of retirement plan that allows employees to save and invest for their own retirement Through a you can authorize your employer to deduct a certain amount of money from your paycheck and invest it inthe plan Everyone tries to contribute as much as possible so that when you retire, you can rest peacefully on your nest egg. |
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| B: | That's interesting and logical I guess. In my country, we also have to contribute to a government-run retirement fund, but most people don't really trust itso they just invest in properties or things like that. |
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| A: | That seems a bit unstable don't you think? |
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| B: | Yeah, but corrupt governments inthe past have created distrust among banks and financial institutions, so now people prefer to have money hidden in a jar or a piggy bank. |
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| A: | I've been thinking of doing that lately! I don't want some banker to run off with my money! |
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| pension | | money paid at regular intervals from the government or a previous employer to a person following retirement or to their surviving dependents |
| disability income insurance | | financial assistance to people who acquire a disability so that they can maintain a certain income level |
| survivor benefits | | financial assistance for the families of workers who die |
| unemployment benefits/ compensation | | payments made to an unemployed worker by the goverment or employer during all or part of the period of unemployment |
| defined benefit plan | | a pension plan that pays a defined pension/benefit, but the amount invested may vary |
| defined contribution plan | | a pension plan that has a defined amount to invest, but whose pension/benefit depends on the success of those investments |