The pension fund is a form of institutional investor which collects, pools and invests funds contributed by employers and beneficiaries to provide for the future pension entitlements of beneficiaries $($Davis $1995$a$).$ Pension fund provides a means for individuals to accumulate savings over their working life and to finance their consumption needs in retirement, either by means of a lump sum or by the provision of an annuity.

REQUIRED:

a$.$ Distinguish TWO $(2)$ types of pension funds. $(6$ marks$)$

b$.$ Explain FOUR $(4)$ goals of pension funds in a country. $(12$ marks$)$

c$.$ Interpret how pension funds can have a positive impact on the economy. $(7$ marks$)$