It’s never too early to start thinking about your retirement. Stop daydreaming about what you’re going to do when you’re through with work, and begin thinking critically about how you’re going to afford it. Currently, three quarters of us expect that our children will be able to pitch in when we’re older, but a good economy and job market are never guaranteed. Today, we’ll look at a few different types of pension plans that can help us maintain the lifestyles we’re accustomed to.
- Immediate Annuity Plan
Have you ever heard of a onetime payment pension plan? With an immediate annuity plan, you can either get coverage for yourself alone, or add your spouse. You’ll pay in one lump sum of cash, and get stable, guaranteed payments for the rest of your life. If minimizing risk is important to you, this is one of the most reliable ways to live out your days in comfort.
- Retirement Savings Plan
A retirement savings plan is an ideal way to supplement any additional money you managed to save during your career. A number of these plans offer great flexibility, and even allow you the option of withdrawing a lump sum. Therefore, if your retirement plan includes buying new property or relocating, you’ll have the opportunity to skip monthly payments and use your total savings to fund your biggest retirement dream.
- Superannuation Funds
Superannuation funds see a whole group of people – typically coworkers – saving money for retirement while they work. It’s an easy, hassle-free way for people who aren’t good at saving money to successfully retire. With these funds, a certain percentage is automatically taken out and set aside for your exit. These savings are protected from market fluctuations, so as long as your lifestyle doesn’t change drastically over the years, you’re looking at a solid way to get by.
- Traditional Employee Benefits Plan
Business owners can keep their best employees happy with benefits that work for everyone. An employee benefits plan is a life insurance policy that offers a payout to the company in the event of their death. Alternatively, the money can be released to the employee when they leave the company. It can also bring certain tax advantages.
- Linked Employee Benefit Plan
Are you looking to drive up productivity and employee satisfaction at your company? A linked employee benefit plan is an easy way for you to do this. Surveys show that offering any benefits at all effectively increases satisfaction, but it goes up even further when that employee has options. Like the traditional employee benefits plan, these can bring tax advantages, and the accumulated money can be paid out in installments.
When it comes to pension plans, we can go our own way, stick to an employee plan, or both. It’s worth considering both, as research indicates that most of us are not adequately prepared for retirement. By spreading your efforts across multiple plans, you’ll be less vulnerable to unexpected life events and market changes. Where do you anticipate life will take you? With retirement provisions in place, you’ll be able to go with the flow.