Retirement
Funds (retirement plans) are funds that aim to provide a steady income
to its investor at a future date (usually after retirement). The final
investment combination is age-dependent and linked to retirement.
Typically the Initial investment focus of the fund is on shares,
whereas in later years a shift will occur towards more defensive asset
classes such as bonds and money market investments for greater
security. Some retirement plan (or superannuation) designs accumulate a
cash balance (through a variety of mechanisms) that a retiree can draw
upon at retirement, rather than promising annuity payments.