Understanding company pension plan monthly purchase of funds

Question

A pension based on funds.

What does it mean to add £500 a month to a pension based on funds? Does that mean, I will own an additional £500 worth of that fund each month based on how much of the fund I can get for £500 for any given month?

Answer 1

That's correct, except that the amount you get will be a bit less due to pension management expenses.