Pension funding

isic code 653, 'Pension funding', represents a critical industry within the broader financial services sector. Pension funds play a vital role in providing long-term retirement income security for individuals, while also serving as significant institutional investors that contribute to the overall stability and growth of the economy. This industry's activities are essential for ensuring the financial well-being of both individuals and the broader society.

The main production techniques in the pension funding industry involve the management and investment of pooled retirement savings on behalf of plan participants. This includes activities such as asset allocation, portfolio management, risk assessment, and compliance with relevant regulations. Pension fund managers utilize a range of investment strategies, including 641 Securities and commodity contracts brokerage and 642 Activities of holding companies, to generate returns that can be used to pay out benefits to retirees.

The key inputs required for the pension funding industry include the retirement savings contributions from plan participants, as well as the investment capital and expertise of the fund managers. Pension funds also rely on various financial instruments, such as 641 Securities and commodity contracts brokerage and 642 Activities of holding companies, to generate returns on the invested assets.

The primary output of the pension funding industry is the provision of retirement income and financial security for plan participants. The funds generated by pension funds are used to pay out benefits to retirees, which can have a significant impact on the 841 Public administration and defence; compulsory social security and 851 Education sectors, as well as the overall standard of living for the population.