Pension Basics
[x_custom_headline type=”left” level=”h3″ looks_like=”h3″]What’s the Worth of Your Company Pension Plan?[/x_custom_headline]
Welcome to our second article to help you Live Your Retirement Dream…
If you are part of a company pension plan, it is advisable that you check out from time to time how much your plan is worth. You may have the option to top it up or it may be necessary to have your own private plan. Inflation eats away at our spending power, so to maintain the lifestyle to which you have become accustomed, you will have to spend more dollars when you retire.
A private pension plan can be considered as a tax shelter in cases where personal income tax is payable since the premium can often be deducted for tax purposes. A Registered Retirement Plan must be registered with Inland Revenue Department. The amount which can be claimed for tax purposes varies from country to country.
The company pension plan often allows the options of either a lump sum of a gratuity or a reduced pension and monthly payments for life from the date of retirement. Be sure you know what you opted for.
If you are within five years of retiring, then you should have some idea of how much you will get when you retire. If you are not sure, speak to your Human Resources Manager or Personnel Officer. You need to prepare a budget to make the transition gradually. Once you retire your spending habits will change. In some areas you will spend more while in other areas you will spend less.
For example:-
- the amount spent on clothes will be reduced; you will dress more casually- shorts & sandals
- more money will be spent on health care as health tends to deteriorate with age
- with more spare time on your hands, more money will be spent on hobbies, travel and other recreation
How are you going to handle debts as you plan for retirement? Look out for the final article in the series to get some tips, and call 1-869-465-1011 to Register for this week’s workshop, Live Your Retirement Dream. There are still a few spaces left.
Here’s to a a retirement you dream of…