In the society we live in, most of us go to work in some form or another to get money to live on. As we get older, we amass a lot of work experience. With age, we realize we ought to save for our future when we can no longer work anymore. For us to be able to retire, we have to prepare a method of earning substantial income.
There are many methods of doing this. Some save their whole life so that they can live off their savings when they are no longer working. Some people sort out a plan that acts like a salary by bringing in income when they have retired. These are referred to as pension schemes.
A description of various pension plans that exist
Let us analyze the ?Designed Benefit Pension Plan. A fixed sum of money is paid periodically after retirement that is arrived at by using formula that helps determine your aggregate pension benefits.
Three separate formula are used to calculate your pension benefit. The first is the? flat benefit formula? the second is the? best earning average? and the final is the? career average earning formula?
Defined Contribution Pension Plans are another kind of pension plan. Here, a standard amount is paid into an investment account every month. On retirement, a lump sum is received but the amount received will previously have not been known. The amount varies with the amount your scheme is supplemented by an external source. The sum of interest you have earned for your interest too will influence this. Certain pensions permit you to control much of that happens whereas others give a board of trustees this responsibility.
The two schemes described above are the only 2 that are registered. Other pension schemes do exist but these vary with your business? performance and affect your pension benefits that way.
There are many methods of doing this. Some save their whole life so that they can live off their savings when they are no longer working. Some people sort out a plan that acts like a salary by bringing in income when they have retired. These are referred to as pension schemes.
A description of various pension plans that exist
Let us analyze the ?Designed Benefit Pension Plan. A fixed sum of money is paid periodically after retirement that is arrived at by using formula that helps determine your aggregate pension benefits.
Three separate formula are used to calculate your pension benefit. The first is the? flat benefit formula? the second is the? best earning average? and the final is the? career average earning formula?
Defined Contribution Pension Plans are another kind of pension plan. Here, a standard amount is paid into an investment account every month. On retirement, a lump sum is received but the amount received will previously have not been known. The amount varies with the amount your scheme is supplemented by an external source. The sum of interest you have earned for your interest too will influence this. Certain pensions permit you to control much of that happens whereas others give a board of trustees this responsibility.
The two schemes described above are the only 2 that are registered. Other pension schemes do exist but these vary with your business? performance and affect your pension benefits that way.
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