Pension funds

Definition

Pension funds are financial institutions that collect, manage, and invest money saved by individuals and employers for retirement. They pool contributions from members to invest in various assets, aiming to generate returns that can pay out pensions in the future.

Related terms

401(k) Plans: A type of retirement savings plan sponsored by an employer, allowing employees to save and invest a piece of their paycheck before taxes are taken out.

Asset Management: The process of developing, operating, maintaining, and selling assets in a cost-effective manner, typically involving investments like stocks and bonds.

Annuity: A financial product that pays out a fixed stream of payments to an individual, primarily used as an income stream for retirees