funded pensions

Funded pensions are retirement plans where ongoing contributions from employees, employers, or both are invested to build a dedicated fund. Over time, these investments grow, accumulating enough to provide pension payments during retirement. The idea is to set aside money throughout working years to ensure financial security later on. Funded pensions are common in many countries and can be managed by government agencies, private companies, or pension funds, aiming to balance current contributions with future payouts while managing investment risks.