Pension Fund

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DEFINITION of 'Pension Fund'

A fund established by an employer to facilitate and organize the investment of employees' retirement funds contributed by the employer and employees. The pension fund is a common asset pool meant to generate stable growth over the long term, and provide pensions for employees when they reach the end of their working years and commence retirement.

BREAKING DOWN 'Pension Fund'

Pension funds are commonly run by some sort of financial intermediary for the company and its employees, although some larger corporations operate their pension funds in-house. Pension funds control relatively large amounts of capital and represent the largest institutional investors in many nations.

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RELATED FAQS
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    It is estimated that institutional pension funds in the United States typically have about 5% to 10% of their assets allocated ... Read Full Answer >>
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    While there are similar drawdown plans in the United States, a pension income drawdown plan most commonly refers to a specific ... Read Full Answer >>
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    A drawdown arrangement is most frequently associated with pension funds and how retirement income is received. The principle ... Read Full Answer >>
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