A pension fund is a type of investment fund specifically set up to manage and grow financial assets to provide retirement benefits for employees. These funds accumulate capital by receiving contributions from employers, employees, or both, and invest these contributions in a diversified portfolio of assets, including stocks, bonds, real estate, and other securities. The primary objective of a pension fund is to ensure that sufficient funds are available to meet future pension obligations, typically paid out as regular income to retirees. Pension funds can vary in structure, including defined benefit plans, which guarantee a specific payout at retirement based on salary and years of service, and defined contribution plans, where contributions are invested, and the payout depends on the fund’s performance. Pension funds are regulated to ensure their financial health and the security of retirement benefits for participants.
A recalibration of pension points will occur in 2025, affecting retirement futures based on changes in the average income. Pension points are calculated from contributions by employees and employers, with…