Which of the following best describes a pension?

A pension is primarily a long-term savings plan specifically designed to provide financial support to individuals during their retirement years. This option emphasizes the nature of pensions, which involve regular contributions that accumulate over a long period, typically throughout a person's working life.

The goal of a pension plan is to ensure that individuals have enough funds saved to cover their living expenses once they stop working. Contributions to a pension might come from both the employee and employer, and these funds are often invested to grow over time, offering a secure financial future during retirement.

The other choices do not align with the fundamental characteristics of a pension. For instance, short-term investment strategies focus on quick returns and do not account for long-term savings for retirement. A type of bank account for daily withdrawals implies immediate access to funds rather than a structured, long-term savings vehicle. Lastly, borrowing money from banks does not reflect the purpose of a pension, which is to save rather than incur debt. Thus, the correct description of a pension is indeed that it is a long-term savings plan with contributions over a lifetime.