Basic Guide to Pensions
Pension plans were once popular among many employers; today, pension plans are more likely for government employees and those who work within union structures. A pension is simply a type of retirement account that is maintained by the company you worked for. Upon retirement, you receive a fixed payout. Depending on how your pension is set up, you can opt to take a single large payment or receive an amount each month. The amount you receive is based on how long you worked for a company and how much you made while working there.
Getting the Most From Your 401K
A 401K is not the same thing as a pension. Although the plans are usually offered through an employer, you must elect to take part in these benefits, and you might have some say in how your investment funds are handled. You are also partially responsible for funding your 401K account through pretax deductions from your paycheck. Some employers match contributions up to a certain percentage of your paycheck, which can help you build retirement savings faster.
Protecting Your Financial Interests
Understanding End-of-Life Insurance Needs
After you’ve covered financial basics for your retirement needs, you might want to consider financial needs for end-of-life and beyond. Health insurance is a must for anyone in retirement, and you might want to consider long-term care insurance to cover any stays in nursing homes. Life insurance is also important, especially if it’s possible you might pass away and leave outstanding debts or obligations. Life insurance is also a good way to ensure your family isn’t left holding a bill for funeral or cremation costs if you haven’t already made arrangements with a provider such as Neptune Society to prepay for services.
End-of-life and retirement financial needs can be complex. Consider working with a professional adviser to determine how much savings you need to live comfortably in retirement and how you should manage funds post-retirement to get the most from your savings.
Published | Category: Cremation Planning for Caregivers.