Retirement funds, usually referred to as pension funds, are investment choices that enable a person to set aside a specific amount of income for their retirement. After retirement, these funds provide a consistent stream of funding; retirees get an annuity on their investment until death. Most pension funds offer returns in the form of a lump sum payment or a monthly annuity. An annuity is a set payment that typically includes inflation protection. Lump-sum payments enable investors to take a complete distribution of their built up money upon retirement. In these types of funds, there are primarily two ways to invest: either by a one-time lump sum investment or through a Systematic Investment Plan (SIP). The investor will be able to use SIP to make a fixed deposit at predetermined intervals, such as monthly, quarterly, and yearly. 

Pension funds are invested on behalf of the investor, and the revenue from such investments is donated as the interest paid on the fund pool. These provide a fixed benefit because they are independent of market swings and asset returns. To maintain consistent returns, retirement mutual fund programs typically invest in low risk investment options like government securities. Pension funds are the best option for retirement planning because they often provide up to 11% interest depending on the policy and assets. The retirement plans provided by mutual funds are a great alternative for retirement planning. The lock-in period for these funds is five years, which is less than the lock-in time for the government's National Pension Scheme, which is fifteen years. These funds will provide you with respectable returns and safeguard you for your retirement years.