Points about pension

After years of hard-work when one puts up their feet, what they expect is a quiet and comfortable life. For this, financial independence is very important. Apart from the severance benefit, that monthly assured sum – called pension, is more a relief than anything.  But how many would know anything about it from beyond what they get?

What is a pension?

The pension is an assured monthly payment that one gets after retiring from their job. A pension fund is either created by the employer for each employee or by an individual by investing in a pension plan with some agency. Apart from the retirement pension, the government too has initiated pensions for the benefit of various people of the society.

Where did it begin?

The first instance of pension began in Germany when Duke Ernest the Pious of Gotha, started a widow’s fund and later a fund for teachers. This later on spread to other parts of Europe. Old age pension too started from there. They taxed the workers to fund the old people. Even the UK, USA and Ireland have their share in introducing different types of pensions.

Various forms of pensions

Besides, what the employer provides, there are also a whole lot of pensions that the government has introduced for the protection and advantage of people from various strata and sections of the society. Mentioned below are a few:

  • Employment, pension: This is created by the employer. The periodic amount that has to be put in an individual’s account is calculated on the basis of the years of service with the company plus the age of the person and the total cost to the company.
  • Widow pension: This is for widows who are above the age of 40 and are below the poverty line
  • Disability pension: This is for people who are unable to support themselves due to mental or physical disability. After a detailed medical examination by the doctor appointed by the government this pension is created for the individual
  • Family pension: This pension is transferred to the spouse of the pensioner, in the case of their death, or to their dependent children, if even the spouse is no more
  • Compulsory Retirement pension: In case a where a person is forced to retire from the job due to some penalty, even they shall receive pension that they are eligible for
  • Pension plan: This is created by the individual by investing in a pension fund with the government agencies or with insurance companies. The pension received is calculated on the basis of premium paid, for a number of years the policy is created

All the pension schemes came into existence to give people economic freedom.  So that after years of hard work, if they have been working, or due to some unforeseen reason they have been rendered disable (mentally, physically or emotionally); they can continue to lead their life with dignity and not get subjected to neglect from people around or society in general.

Pensions Advice: Things you should know before you retire.

You may have led a very happy job life, but have you ever thought what you will be doing after you retire. Are you near to the end of your career but have not retained enough assets for yourself? Does your job offer pension scheme? Well, in this write-up, you will know everything that you should know before retirement. Pension’s advice or free pensions advice is something that you should not ignore- let us find out why.

What is Pension?

It is a fixed amount of money usually paid at regular intervals to a retired individual. This system has been implemented to ease the life of the retired people.

After retirement, people have lots of leisure time, but what they do not have is one of the most important things for living which is a job. To live life fully without being dependent on others, the pension system has become a popular system all over the world.

When should you be concern?

There is no definitive answer. Some people start to make their plans right from the beginning of their career; others start a bit late. It is always better to get knowledge beforehand from the pensions advisor.

Work pension and private pension.

Although all types of pensions are basically the same thing with different terms there are two types which indicate two different source of pension payment.

The first one is work pension which is, as we all know, the pension we get after the retirement from a particular work. The terms regarding payment are clearly laid out in the contract agreement when you first started the job.

The second on the list is the private pension which is, in most cases, a privately funded pension to the retired people or the people who cannot work for various reasons. This payment varies from country to country. In some stances, people can enjoy both work pension and private pension simultaneously. Another concept of private pension is more common. People save a part of their earning in a fund which is released at the time of their retirement. This is also known as the private pension.

There are many advantages to having a pension scheme:

Your future is secured – sipps pension

You will get fixed amount at regular interval which means you can meet the expenses during this time

Pensions UK

If you do not know anything about Pension, you should research right away. If you don’t want to take the burden of researching, you can also contact a pension advisor who is a professional person responsible for handling pension related matters. You may have a very happy family with your children grown up and well-established. Nevertheless, it is always better to keep yourself totally independent of any issues or situations of life. That is how; you can enjoy your life to the fullest even when you are in your retirement period.

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