Pension Planning: Retirement Income Sources

Pension Planning: Retirement Income Sources

Retirement income is a term that describes the money you will receive from your pension plan. It is also known as annuity income and can be made up of a number of sources, including fixed deposits, insurance policies or even proceeds from property investments.

Pension definition

A pension is a regular payment made to you after you retire. It is usually based on your salary and how long you have worked. The payments are usually tax free, so they can help to supplement other sources of income such as savings or investment returns.

There are different types of pensions:

  • Defined benefit schemes – These were very common in the past but now only around 5% of people are members of them; these provide an assured level of income based on your salary and length of service with an employer or other organisation (e.g., public sector). You may also get inflation protection in addition to this basic amount if it’s included in the scheme rules; however this isn’t guaranteed as some schemes might not offer inflation protection at all if they don’t think that there will be enough money available over time (and many do). The risk here is that if there isn’t enough money coming into these schemes then it could affect what you receive when it comes time for retirement!

Retirement income sources for pensioners

Pension plans are designed to provide you with an income in your later years. However, they are not always enough to live on, so …

Pension Planning: Retirement Income Sources Read More
Government Pension Benefits Explained

Government Pension Benefits Explained

The government pension is a type of income that you can get from the government. It’s often called a state pension, but it’s not to be confused with private pensions or corporate schemes such as the National Pension Scheme (NPS).

What is a government pension?

A government pension is a retirement benefit paid to people who have worked for the government and other public sector organizations. A government pension scheme or plan is any arrangement for providing such benefits.

A government pension fund refers to an investment vehicle in which assets are held, managed and invested by an organization on behalf of its members (i.e., those who receive payments from it).

What are the different types of government pensions?

There are two main types of government pensions:

  • State pension. This is a basic state-funded pension that you get if you’ve paid enough National Insurance contributions over your lifetime. It’s payable to everyone over 65 years old who has reached state retirement age (currently 66).

It’s worth noting that not all of your National Insurance contributions will count towards your state pension–some may be used to pay for other benefits such as healthcare or unemployment support.

How can I access my government pension?

You can access your government pension online and by calling the government pension helpline. You can also visit the government pension office in person to access your payment if you prefer not to use technology or if it’s more convenient for you.

You can find out about your

Government Pension Benefits Explained Read More
Understanding Employers' Pension Contributions

Understanding Employers’ Pension Contributions

It is important that you understand why your employer has chosen to contribute what they have done, as well as how it could affect you in the future.

Employer contributions are made by the employer to a pension scheme to provide benefits for employees.

Employer contributions are made by the employer to a pension scheme to provide benefits for employees.

A pension scheme is an arrangement that enables an individual or group of people (the members) to save for their retirement. Members make regular payments into the scheme and in return receive a regular income when they reach retirement age.

Pension contributions are usually made by employees, but employers can also pay into them too – this is known as salary sacrifice.

Each employer will be required to make contributions, which could be in the form of a pension contribution or salary sacrifice.

Employers’ pension contributions are made by an employer to a pension scheme to provide benefits for employees. The amount of an employer’s contribution is not mandatory, but employers may be required to make them by law or rules set by the pension scheme itself.

Some employers may choose to pay all the contributions and not offer salary sacrifice options.

Some employers may choose to pay all the contributions and not offer salary sacrifice options. This is a common choice for employers who want to save money on their own pension contributions, but still give employees an incentive to save for retirement.

The employer will make an additional …

Understanding Employers’ Pension Contributions Read More
Defining The Types Of Pensions

Defining The Types Of Pensions

Pensions are a critical part of retirement planning. You can’t just assume that you have enough money in your 401(k) plan to support you through your golden years.

Defined Benefit Plan

A defined benefit plan is a pension plan that provides a guaranteed benefit based on a formula. The employer is responsible for funding the plan, and employees have no control over how their benefits are calculated. They also bear all of the risk associated with investing in equities or bonds.

Defined Contribution Plan

A defined contribution plan is a retirement plan in which the employer does not promise to pay a specific benefit at retirement, but instead contributes a certain amount to an individual account for each employee. The employee then manages that account by investing it in mutual funds or other investments.

Cash Balance Plan

A cash balance plan is a type of defined benefit pension plan. It’s like a traditional defined benefit plan in that it provides a guaranteed payment to retirees, but it also has features like a defined contribution plan. A cash balance plan can be thought of as being halfway between the two types of plans:

The most important difference between these two types of plans is that in a defined contribution plan, employers contribute money into individual accounts for each employee (e.g., an IRA) while in a defined benefit pension plan they pay out benefits based on formulas and projections about future earnings potential

Hybrid Plan

Hybrid plans are a mix of defined …

Defining The Types Of Pensions Read More
Occupational Pension Definition

Occupational Pension Definition

Occupational pension is a type of pension that can be offered to employees. Typically, these pensions are designed in such a way that they are beneficial for both the employer and the employees. There are several different types of occupational pensions, including DB pension plans and DC pension plans.

Employer pension

Generally speaking, an employer pension is a pension scheme that has been registered by an employer. It is a way to save for your retirement and provide a guaranteed benefit.

There are many types of workplace pension schemes. Different types have different rules. They also have different benefits. You should compare the benefits of each pension before choosing one.

One type of workplace pension is the defined benefit plan. This is usually based on the amount of salary that the participant receives in retirement. This benefit is often calculated based on the number of years that the participant has been working for the employer.

Another type is the money purchase scheme, also known as a defined contribution plan. These types of plans are funded by contributions from the employer and employee. The money is invested and grows over time. The value of the investment may go down or it may go up.

Some workplace pension schemes also offer other benefits. For example, some of them may pay a lump sum at retirement. You may also receive regular payments for life through annuity.

DB pension plan vs DC pension plan

DB and DC pension plans have their own merits. A …

Occupational Pension Definition Read More