Finding the best pension plans for you: According to the study, people almost spend one third of their life in retirement. Retirement is the time when you are not able to or willing to work but you need to have some money to live the rest of your life.
Most of the people start keeping money aside for their retirement as many places of employment include some kind of a pension plan.
Pension is an investment made during the working period and is used after retirement to provide a regular income. It is a fixed amount which is paid on a regular basis to a person who is not working.
There are many different varieties of pension plans to choose from. But generally there are 2 types of pension plans – private or individual pension plan and company pension plan. All the pension plans are categorized in these two categories.
Private or individual pension plan is the one which is put up independently regardless of whether you are working or not. In this scheme you have personal, stakeholder or self-invested pension. You can choose any one among these three plans.
A company pension plan is the one which is most preferred and has many benefits. In this plan the company you worked with would save or cut some money from your salary when you are working with them and either adds the same amount or more than that for your future retirement use.
This plan offers flexibility as you can transfer the pension to other company in case you change your company. However, you should consult a financial advisor before doing this.
Another option which can be considered is final salary pension plans wherein it depends on the amount of money contributed and the duration for which you have worked with a company.
You would receive some percentage of the final salary for your retirement. This plan also can offer many benefits.
So, if you want to have a financially sound future then it pays-off if you find a good pension plan according to your convenience.