Pensions are a reality that won't go away and everyone has to deal with it ultimately. Shirking that responsibility is very dangerous as almost everybody can expect to live beyond their retirement age. There are many pension plans and a little due diligence from your part can avert a big blunder in investments.

1. How To Find The Right
Pension Plan For Your Specific
Service?

2. • Pensions are a reality that won't go away
and everyone has to deal with it ultimately.
Shirking that responsibility is very
dangerous as almost everybody can
expect to live beyond their retirement age.
• There are many pension plans and a little
due diligence from your part can avert a
big blunder in investments.

3. What is a Pension Plan?
• To put it in simplest terms it is the money
contributed by an individual and the
company he works for, over the time of
employment to benefit the individual upon
retirement.
• These schemes differ widely in the returns
they offer and the way they are offered.

4. • There are two main types of plans for all
pensions and those are defined
contribution or money purchase plan and
the defined plan.
• The plans can be combined to form
combination plans also.

5. • Designed benefit plans are modeled to
give a pre determined amount of pension
when an individual retires.
• This is based on some sort of a plan
designed to factor in various things like the
amount contributed by the employee and
years of service. The employee is given
status on his earnings every year.

6. • There are fixed rate where an amount is
fixed per year and the number of years the
employee works.
• Alternatively there is a plan where the
average earning or final earnings is got and
a percentage computed on it to be your
pension.

7. • There is another plan where your pension
is a fixed percentage of your annual pay.
• The other major type of pension an
employee can opt for is the defined
contribution pension plan. Here the
employee purchases or contributes
regularly for retirement.

8. • This is invested on the employee's name
in an investment account. Upon retirement
the employee is free to use this amount
for his expenses.
• One major drawback is that the employee
has no idea of the amount he incurs until
after retirement.

9. • Sometimes this plan may backfire as the
employee may not be aware of his future
expenses and cannot plan properly for it.
• Sometimes this plan is designed in a way
that the investments are designed by a
board of trustees on behalf of the
employee.

10. • There are also unregistered plans which
are offered to the employees as
incentives. They are deferred profit
sharing plan and employee stock
purchase plan.
• These plans do well if the company
performs well.

11. • So this is a risky venture as the markets
are often volatile and unpredictable. But if
the company does well the employee
stands to benefit a lot.

12. • Stock option plan is another option offered
to the individual in the company. The
employee can buy stocks at a lower rate
and can sell whenever they want.
• The company offers a good contribution to
this stock. Again this option may go either
way.

13. • So evaluate all the options and discuss
this with your personal
Cork financial adviser to pick what's right
for you.