Saving for Retirement

Most of us are looking at the social security system and have been notified already that full benefits will not be available to us until sometime significantly past the 65 years old benchmark. Some of us are looking dubiously at the likelihood of ever getting a social security benefit based on the baby boomer generation reaching retirement age. Remember one thing……it’s never too late to start saving.

Saving for retirement has some tax advantages. In lower income situations, there is a retirement savings credit. For some people they can obtain a “match” of their contributions to a certain % of the monies they save. Look at this “match” as free money. You get it for doing something that you would have done anyway. If you have a matching situation in your 401(k) or profit sharing plan, if you don’t participate, you are passing up this “free money” opportunity. Additionally, you may deduct an IRA contribution to a traditional IRA investment account if certain criteria are met. Continue reading “Saving for Retirement”

The Importance of Pension Plans and Retirement Programs

Most people live a day at a time and do not give much importance to the future and don’t even have a clue of how they will handle the future past their jobs. This kind of lifestyle is very bad and could end up bringing lots of problems later for people who were not keen enough to secure their future.

There are several pension plans and retirement plans that help people secure the future to make sure that even after they leave work, they will have a steady cash flow that will see them through the unknown times of the future which can be quite unpredictable. Failure to getting into a scheme that will benefit you later can leave you more of a beggar and a burden to the people closest to you.

Pension plans are related to the employment one has and therefore there is no way you can have your own plan. The income and years of service to a certain employer is what determines the pension benefits one will receive once retired. Unlike retirement plans where one has to contribute, it is the employer who contributes for a pension plan which includes the projections of the income in question to secure the employees benefits. Although these plans are slowly being ignored, there are companies still working with them especially union and government institutions. This kind of a plan is very important as it helps employees survive harsh times that may come when they finally retire and do not have any means of income and probably have nobody to help them out. Continue reading “The Importance of Pension Plans and Retirement Programs”