RETIREMENT FUND Meaning and
Definition
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A retirement fund, commonly referred to as a pension fund, is a pool of money specifically set aside to provide income for individuals once they reach retirement age. It is a long-term savings plan designed to ensure individuals have financial security and can sustain their lifestyle after ceasing employment.
Typically, retirement funds are either employer-sponsored or personal savings accounts that individuals contribute to throughout their working years. Employer-sponsored retirement funds are often offered as part of a benefits package, with the employer usually contributing a portion of the funds. These funds are invested in various financial instruments such as stocks, bonds, mutual funds, or government securities, aiming to grow over time.
The purpose of a retirement fund is to accumulate wealth and generate income during retirement, allowing individuals to cover their living expenses when their main source of income – a salary or wages – comes to an end. The funds are typically accessible once the individual reaches a certain age, often referred to as the retirement age, which varies from one country to another. At retirement, individuals can choose to receive periodic payments or withdraw a lump sum from their retirement funds.
The aim of a retirement fund is to provide individuals with a reliable and stable income stream during their retirement years, ensuring they can maintain their standard of living, cover healthcare expenses, and enjoy a comfortable lifestyle free from financial stress. It is essential for working individuals to actively contribute and monitor their retirement funds throughout their career to secure a financially sound and worry-free retirement.
Common Misspellings for RETIREMENT FUND
- eetirement fund
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- tetirement fund
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- 4etirement fund
- rwtirement fund
- rstirement fund
- rdtirement fund
- rrtirement fund
- r4tirement fund
- r3tirement fund
- rerirement fund
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- regirement fund
- reyirement fund
- re6irement fund
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- returement fund
Etymology of RETIREMENT FUND
The etymology of the word "retirement fund" is as follows:
1. Retirement: The word "retirement" has origins in the Old French language. It derives from the verb "retirer", meaning "to withdraw or retreat". In the 16th century, it started being used to refer to the act of leaving one's occupation or job.
2. Fund: The word "fund" derives from the Latin word "funds", which means "a sum of money". In English, it originally referred to a sum of money set aside for a specific purpose or as a reserve.
Therefore, the term "retirement fund" refers to a sum of money set aside or saved specifically for the purpose of ensuring a person's financial security during retirement.
Similar spelling words for RETIREMENT FUND
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