Searching for a job with a retirement plan that’s suitable for your expectations can be a tricky journey.
Not all jobs offer the same plan and trying to make old plans or new ones work around a new investment strategy can be even trickier. Still, there are some plans out there that might be easier to work with if you’re not sure what you’re looking for, such as a pension plan. Once you know how pension planning works, you might find that it’s a fitting plan for your retirement. So ask one of our retirement plan consultants about your possible pension plan!
A pension plan is a tax-exempt retirement plan that’s set up by an employer. The employer sets aside certain funds that will become available for the employee’s potential profit. In return, the employee will invest in the funds as to collect various benefits when going into retirement. To better understand how pension plans work, feel free to talk to one of our qualified pension planners.
Types of Pension Plans
Pension plans normally consist of an employee transferring a certain amount of his or her’s income towards retirement wages. Nevertheless, there are many ways to go about financing your pension plan, whether it’s with a retirement plan consultant or picking your own specific plan.
Some different types of pension plans include:
- Defined-Benefit Pension Plans
- Employee Stock Ownership Plans
- Money-Purchase Plans
- Profit-Sharing Plans
- Simplified Employee Pensions
- Savings Incentive Match Plans
One of the most popular types of pension planning is a profit-sharing plan. This plan is accepted amongst many people because it allows employees to have some sort of stake in the company’s profits. In this type of plan, employees obtain a percentage of the company’s profits, a percentage of which all depends on a number of factors such as how much the company is earning or how long the employee has been part of the pension plan.
In order to make the most of your pension planning, speak to one of our pension planners now and we’ll be of assistance to any of your financial consulting needs.