What is a Pension Fund?

A pension fund is a plan or scheme that invests money to provide retirement income. Scheme members pay into the pension fund in order to build up a lump sum that they then use to pay for retirement. The money from the pension fund is usually invested into a series of funds with different focuses, combined into a portfolio. Most pension funds are run by insurance companies, though some are run by asset managers.

Related terms
What is an Occupational Pensions
What are Pensions Contributions