Pension Funds - Facts You Need To Know
If you start participating in a retirement fund at the age of 25 with a monthly contribution of 10 million VND, by the time you retire at the age of 60, you can begin to receive the "sweet fruits" of the fund. With the account value potentially reaching 17 billion VND, you could receive an equivalent payment of up to 26 million VND per month. So, what is a pension fund, and what are the benefits of this investment form? Let's explore together with SSIAM:
1️⃣ Concept:
A pension fund or voluntary pension fund is an investment vehicle that is contributed to by both employees and businesses. The purpose of the pension fund program is to create a tool for employed people to invest and accumulate an additional source of income for retirement in addition to the pension paid to them by Social Insurance.
2️⃣ Participants:
1️⃣ Concept:
A pension fund or voluntary pension fund is an investment vehicle that is contributed to by both employees and businesses. The purpose of the pension fund program is to create a tool for employed people to invest and accumulate an additional source of income for retirement in addition to the pension paid to them by Social Insurance.
2️⃣ Participants:
- Businesses who contribute to the fund on behalf of their employees.
- Employed people in the age range of 18 to 60.
3️⃣ How the Pension Fund Works:
- Voluntary pension fund contributions are managed by investment professionals from an asset management company. The investment professional will invest in a range of income-generating assets such as, commercial bank deposits, government bonds, government-guaranteed bonds, and investment fund certificates of stocks and bonds.
- Participants in the fund will be protected by the most transparent mechanisms, managed, and supervised by various parties, including the asset management company, supervisory banks, and state management agencies.
4️⃣ Benefits of Participating in the Pension Fund:
- For employees: Increase income to supplement Social Insurance benefits, and long-term stable income growth with the effects of compounding interest and low risks.
- For businesses/employers: Help businesses maintain a stable workforce by strengthening ties with employees and creating a professional working environment that is competitive in terms of benefits.
Voluntary retirement programs are gradually becoming one of the main pillars of social security for employed people in many countries and are increasingly being applied in Vietnam, alongside traditional security benefits. SSIAM is one of the first units to make substantial efforts to establish voluntary pension funds to serve the Vietnamese labour force. Let's learn more about voluntary retirement funds with SSIAM in the coming future!
Admin
Published:
16/10/2023
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