Pension funds manage retirement savings for individuals from "summary" of Financial Markets and Institutions, Global Edition by Frederic S. Mishkin,Stanley G. Eakins
Pension funds play a crucial role in managing retirement savings for individuals. These funds are typically set up by employers or labor unions to provide retirement benefits to employees. They collect contributions from employees during their working years and invest these funds in a variety of financial assets such as stocks, bonds, and real estate. The primary goal of pension funds is to ensure that individuals have enough money to support themselves in retirement. To achieve this goal, pension funds carefully manage their investment portfolios to generate returns that will be sufficient to cover future pension payments. This involves balancing the need for growth to increase the val...
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