pension fund
A pension fund is a type of investment fund that collects and manages money to provide retirement benefits to its members. Typically established by employers, government entities, or unions, the fund pools contributions from employees and may also include employer contributions. This money is then invested in various assets, such as stocks and bonds, to grow over time. When employees retire, they receive payments based on their accrued benefits, ensuring financial stability during retirement. Essentially, it’s a way to prepare financially for the future by saving and investing money systematically throughout one’s working life.
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A pension fund is a type of investment vehicle that collects and manages money contributed by employees and employers to provide retirement benefits. It invests this money in various assets, like stocks and bonds, to grow its value over time. When employees retire, they receive regular payments from the fund, ensuring financial stability in their later years. Pension funds play a crucial role in helping people save for retirement, and they are often managed by financial professionals to maximize returns while managing risk.