Editing Pension (section)

===Funded===
{{See also|Defined benefit pension plan#Funded pension plans}}
In a ''funded'' plan, contributions are invested in a fund towards meeting the benefits. All plans must be funded in some way, even if they are pay-as-you-go, so this type of plan is more accurately known as '''pre-funded''' or '''fully-funded'''. The future returns on the investments, and the future benefits to be paid, are not known in advance, so there is no guarantee that a given level of contributions will be enough to meet the benefits. Typically, the contributions to be paid are regularly reviewed in a valuation of the plan's assets and liabilities, carried out by an [[actuary]] to ensure that the pension fund will meet future payment obligations. This means that in a defined benefit pension, investment risk and investment rewards are typically assumed by the sponsor/employer and not by the individual. If a plan is not well-funded, the plan sponsor may not have the financial resources to continue funding the plan.

Occupational pensions are typically provided through employment agreements between workers and employers, and their financing structure must meet legislative requirements. In common-law jurisdictions, the law requires that pensions be pre-funded in trusts, with a range of requirements to ensure the trustees act in the best interests of the beneficiaries. These jurisdictions account for over 80% of assets held by private pension plans around the world.<ref>{{Cite web|title=Pensions - Private pension assets - OECD Data|url=http://data.oecd.org/pension/private-pension-assets.htm|access-date=2021-08-01|website=theOECD|language=en}}</ref>  Of the $50.7 trillion of global assets in 2019, $32.2T were in U.S. plans, the next largest being the U.K. ($3.2T), Canada ($2.8T), Australia ($1.9T), Singapore ($0.3T), Hong Kong and Ireland (each roughly $0.2T), New Zealand, India, Kenya, Nigeria, Jamaica, etc.{{Citation needed|date=March 2024}}

Civil-law jurisdictions with statutory trust vehicles for pensions include the Netherlands ($1.8T), Japan ($1.7T), Switzerland ($1.1T), Denmark ($0.8T), Sweden, Brazil and S. Korea (each $0.5T), Germany, France, Israel, P.R. China, Mexico, Italy, Chile, Belgium, Spain and Finland (each roughly $0.2T), etc. Without the vast body of common law to draw upon, statutory trusts tend to be more uniform and tightly regulated.{{Citation needed|date=March 2024}}

Canadians have the option to open a [[registered retirement savings plan]] (RRSP), as well as a range of employee and state pension programs. This plan allows contributions to this account to be marked as un-taxable income and remain un-taxed until withdrawal. Most countries' governments will provide advice on pension schemes.{{citation needed|date=July 2016}}

Several countries have hybrid systems which are partially funded. Spain set up the Social Security Reserve Fund and France set up the [[Pensions Reserve Fund (France)|Pensions Reserve Fund]]; in Canada the [[Canada Pension Plan|wage-based retirement plan]] (CPP) is partially funded, with assets managed by the [[CPP Investment Board]] while the U.S. [[Social Security (United States)|Social Security]] system is partially funded by investment in special U.S. Treasury Bonds.