A pension plan is a form of savings account that an employer controls in order to award you with a fixed payout at the time of your retirement. Your payout is generally dependent on your salary and how long you have worked. Just like with an annuity, at the time of your retirement you choose the way you would like to be compensated. You can choose between a monthly “annuity” payment or a lump-sum payout. Speak with an insurance agent at Nickerson to weigh the pros and cons of both options. Between a life-only annuity and a joint-and-survivor benefit, there are many decisions to be made when your employer offers you a pension. Let an insurance agent assist you through the decision making process.
Although a pension plan is a very attractive benefit to a career, your pension should not be your only retirement planning tool. Speak to an insurance agent to discuss other traditional retirement planning methods. Chances are most pensions will not be able to adequately cover all of your retirement needs. The most desirable retirement savings account is a Roth IRA. With a Roth IRA retirement account, your funds grow tax-free.
For more information about pensions, IRAs, annuities and retirement planning, speak to one of our knowledgeable insurance agents and start planning for the future.