How do pensions offer benefits for the lifetime of the member?

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If you pay into a pension for so many years, but end up living a long time then you will have likely gone through the principal as well as any interest earned. How do retirement systems fund this if you’ve drawn more than you’ve saved over the years?

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7 Answers

Anonymous 0 Comments

Ideally, the fund managers invest wisely and the gains keep the fund solvent.

However, they sometimes fail and the pension fund does stop paying out to participants.

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