Pensions can drastically improve your financial status during your retirement. Offered by your employer, this handy program benefits one out of five American workforce members. Though not all of us have them as resource to utilize, for those who do, it’s important to know what to expect if you’re retiring with a pension.
- You still need a full retirement fund. However much you think you need to retire, you need more. A pension may help with a bit, but it’s likely not enough to last you through your reinvention years.
- You should take advantage of all options. Expect to take advantage of the regular channels that retirees use to fund their golden years. As we’ve mentioned, your pension is no substitute for a retirement fund, so maximize employer-matched retirement funds, Social Security, and your benefits. This will help you improve your quality of life in retirement—and keep you from spending so much time worrying.
- You’ll need to decide the form of your pension. While you may think there’s only type of pension, that’s incorrect. Many of us picture pensions as a slow yet steady source of income. However, there are actually two options from which you can select: lump sum payments or annuities. If you choose to receive the lump sum, you get all the money all at once. This is helpful for those with immediate needs. However, if you prefer to play the long game, you can pick a pension in the form of annuities, which you can receive gradually as time goes by. Consider your finances and future expenses as you make this decision. Are you in need of long-term or short-term financial help? The answer can help determine your choice.
- Your partner can receive your pension. Consider getting a joint pension, as opposed to a single one. That way, if tragedy strikes, your partner can continue to benefit from your pension, allowing you to continue to take care of him or her in the long run.
- Your pension relies on the company who provides it for survival. It’s all well and good to have the advantage of retiring with a pension. However, if you’ve never heard the phrase “the best laid plans of mice and men often go awry,” then you should keep it in mind. Even if you have a pension plan, your company may go bankrupt or other misfortune may occur. Remain vigilant, flexible, and aware so that you don’t find yourselves becoming too reliant on your potential pension.
- Retiring with a pension is becoming more and more infrequent—so you should know what to do without one. Save as much as you can for retirement. After all, it’s better to have more in the bank than less. Essentially, you should think of a pension as supplemental income, but not the main source of money in your retirement fund. That way, you can rely on it if the worst happens, but it won’t be your only fallback option.
Your pension just one of the many moving parts which makes your retirement possible. Make sure that you’re using it to its highest potential, allowing you to form the nest egg you need for a wonderful retirement. You deserve to bask in your golden years, after all.
Whether you want to grow your pension funds, money-protected, or earn more for your future retirement, the expert investors at Ty J. Young Inc. possess the expertise to make the process simpler for you. With our help, you can turn retiring with a pension into something much greater. If you want to learn more, call us at 877-912-1919. Want to grow your knowledge about the retirement process too? Head on over to our Retirement You Earned Blog.