A pension fund is a type of investment fund that collects and manages money to provide retirement benefits for employees. Companies and sometimes employees contribute to these funds over time, allowing the money to grow through investments in stocks, bonds, and other assets. When employees retire, they receive regular payments from the fund, helping them maintain their standard of living. Pension funds are crucial for financial security in retirement, as they ensure that individuals have a steady income after they stop working. Many countries have regulations in place to protect these funds, ensuring that they are managed responsibly and that retirees receive their promised benefits.