Sunday 31 March 2013

A pension

Workers fortunate enough to get a traditional pension through their jobs generally have a second guaranteed source of monthly retirement income. Most private-sector pension plans are insured by the PBGC, which guarantees pension benefits up to certain annual limits and will pay out benefits if your former employer goes out of business. However, workers with traditional pensions are increasingly being offered lump-sum pension payouts, which do not come with the same protections. If you don't manage a lump sum prudently or you live longer than you expected, you could end up spending that money too quickly.

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