A pension fund, also known as a superannuation fund in some countries, is any plan, fund, or scheme which provides retirement income.
Pension funds typically have large amounts of money to invest and are the major investors in listed and private companies.
The income may be guaranteed – sometimes known as a defined benefit – or variable and flexible.
The meaning of the term pension fund varies depending on where you are in the world. In most cases, it refers to a retirement income option.
The terms Social Security and 401k are common in the U.S, and Pension Scheme in the UK.
In the U.S, a pension fund is considered a qualified retirement plan by the IRS. To encourage retirement saving, the IRS offers a tax deduction for contributions into a qualified plan.
In this video, Ray Dailo gives his opinion about pension funds. He believes there are some problems with these funds and that financial returns cannot be guaranteed.
Warning: This video is to show you Dalio’s opinion about pension funds. Please do your research before doing any investment. A good balance between return and risk is the key to investment success.
Source: Finance Jane
