private pension funds

Private pension funds are investment schemes set up by companies or organizations to provide retirement income for their employees. These funds collect contributions from both the employee and employer, which are then invested in various assets like stocks, bonds, and real estate. Over time, these investments grow, aiming to ensure that employees receive a steady income when they retire. Unlike public pensions, which are funded by the government, private pension funds depend on private contributions and investment performance to meet their future obligations to retirees.