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In general, a pension is an arrangement to provide people with an income when they are no longer earning a regular income from employment. It is a tax deferred savings vehicle that allows for the tax-free accumulation of a fund for later use as a retirement income. Pensions should not be confused with severance packages; the former is paid in regular installments, while the latter is paid in one lump sum. The terms retirement plan or superannuation refer to a pension granted upon retirement. Retirement plans may be set up by employers, insurance companies, the government or other institutions such as employer associations or trade unions. Called retirement plans in the USA, they are more commonly known as pension schemes in the UK and Ireland and superannuation plans in Australia and Trinidad and Tobago Police Service. Retirement pensions are typically in the form of a guaranteed life annuity, thus insuring against the risk of longevity. A pension created by an employer for the benefit of an employee is commonly referred to as an occupational or employer pension. Labor unions, the government, or other organizations may also fund pensions. Occupational pensions are a form of deferred compensation, usually advantageous to employee and employer for tax reasons. Many pensions also contain an additional insurance aspect, since they often will pay benefits to survivors or disabled beneficiaries. Other vehicles (certain lottery payouts, for example, or an annuity) may provide a similar stream of payments. The common use of the term pension is to describe the payments a person receives upon retirement, usually under pre-determined legal and/or contractual terms. A recipient of a retirement pension is known as a pensioner or retiree. From Wikipedia under the
GNU Free Documentation License IRAs 401 k s and Other Retirement Plans JPG
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226px x 175px | 13.60kB [source page] Retirement Plans The Sheffield Law Office works with clients to make their retirement plans part of their comprehensive estate plan We help clients maintain their beneficiary designations ensuring that the From Yahoo Image Search: "Retirement plans" New Law May Revive Workers' Pension Plans | Markhoff & Mittman, P.C.
(News Author)11324 Wed, 18 Nov 2009 13:00:01 GM As reported by Joseph Lisanti for The Daily News, starting next year many workers may find their bosses offering a new way to save for . retirement. : A DB(k) . plan. , which combines features of a pension and a 401(k) account. ... 5 Reasons Why You Will Retire Broke and Unhappy : Generation X Finance
Jeremy Wed, 18 Nov 2009 17:45:31 GM Their . retirement plans. were destroyed in a matter of months. Granted, we don't have crystal balls and can't predict what the markets will do, but you can follow some basic investing principals so that you're not putting yourself at ... Tips Offered On Retirement Plan Changes - Regulatory,Legislative ...
(STAFF WRITER) Fri, 16 Oct 2009 00:00:01 GM A Hartford Financial Services Group Inc. executive is recommending some cautionary tips to workers and their advisors about . retirement. rule changes. From Google Blog Search: "Retirement plans" Retirement Advisors Like Securian Best According to Survey
PR Newswire (press release) The advisors ranked their satisfaction with 20 retirement plan providers regarding investments, wholesalers, cost and compensation, product features, ... and more » Mark Gaffney
The Detroit News ... needed them -- family-supporting jobs, living wages, access to health care and secure retirement plans -- they also need help overcoming unemployment. ... and more » Too Many Americans In the Dark on Basic Financial Concepts
KFSM One in 10 people with a mortgage did not know the interest rate they are paying and 17 percent of investors in retirement plans did not know how much of ... and more » From Google News Search: "Retirement plans" Can you explain to me the different kinds of retirement plans? Q. In a simple way, can you tell me the different options for retirement plans and possibly the pros and cons of them? Asked by Cobra Kai Johnny Lawrence - Tue Jan 26 20:42:09 2010 - - 3 Answers - 0 Comments A. The two most common retirement accounts today are 401(k) plans and Individual Retirement Accounts (IRAs). A 403(b) plan is very similar to a 401(k), but is usually offered to employees who work for educational institutions. The two most common types of IRAs are traditional and Roth IRAs. You usually fund traditional IRAs from pre-tax dollars, meaning you can deduct your contributions. However, if you're already covered by some kind of retirement plan at your place of employment, you may earn too much to have a deductible IRA. In that case, you can contribute to a non-deductible IRA. Your earnings will accumulate on a tax-deferred basis. Another option is the Roth IRA, which is always funded with post-tax dollars. This means you… [cont.] Answered by doreen k - Tue Jan 26 22:24:00 2010 Difference between Pension and Retirement Plans? Q. I am 20 years old and recently started a government job which gave me these 2 options to choose from for my retirement. I have had a tough time choosing between the two, the main reason is because I dont know the big difference between them. I don't plan on being there more than 5 years though but I do have a child, please help! Asked by Gaberial - Tue Feb 16 00:12:08 2010 - - 3 Answers - 0 Comments A. The govt retirement program is FERS. It has 3 parts: Social Security, a pension, and the TSP. The government "pension" plan will pay you $x/month after retirement, based on your pay grade and years of service. 5 yrs. is the minimum service to get a pension. You don't have to make contributions to it, the govt makes all the contributions. The government "retirement plan" is their version of a 401k, which means you make before-tax contributions, and whatever it's worth when you leave govt service or retire is yours (a lump sum, not a monthly benefit). This is the Thrift Savings Plan (savings, get it?). You don't have to make any contributions, but the govt will match your contributions up to a certain level. Answered by Susie T - Wed Feb 17 18:57:06 2010 Why is it important for small businesses to establish retirement plans for their employees?
Q. Why is it important for small businesses to establish retirement plans for their employees? Asked by sillysally85 - Wed Apr 22 18:19:55 2009 - - 1 Answers - 0 Comments A. An retirement package could be seen as a "bonus" of employment, especially if its a small business. Retirement packages could be used as a "perk" in attracting and maintaining new hires. You may be surprised to know that, a lot of small businesses doesn't offer a retirement plan to new hires because of the additional expenses needed to maintain a retirement plan offered to employees. Retirement packages are considered optional to a small business, though it is standard practice in offering some medical/retirement plan, to employees, but only if the small business could afford it. Answered by Josef H - Wed Apr 22 18:35:06 2009 From Yahoo Answer Search: "Retirement plans"
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Center for Retirement Research
WalletPop: Retirement
AOL Money & Finance - Retirement