The correct answer is: A. Mortality
Mortality is the probability of death. It is a key factor in pension planning, as it determines the amount of money that needs to be set aside to provide a pension for the duration of the retiree’s life.
Morbidity is the state of being diseased or unhealthy. It is not a major factor in pension planning, as it is assumed that retirees will be healthy enough to enjoy their retirement.
Post-retirement income security is the assurance that retirees will have enough income to meet their needs after they stop working. It is a goal of pension planning, but it is not the basic contingency.
Disability is the inability to work due to illness or injury. It is a risk that retirees face, but it is not the basic contingency associated with pensions.
The basic contingency associated with pensions is mortality. This is because the amount of money that needs to be set aside to provide a pension for the duration of the retiree’s life depends on the probability of death. The higher the probability of death, the more money that needs to be set aside.