What is a Pension plan?

    In general, a pension is an arrangement to provide people with an income when they are no longer earning a regular income from employment.  Pensions should not be confused with severance pay; the former is paid in regular installments, while the latter is paid in one lump sum.
Retirement pensions are typically in the form of a guaranteed life annuity, thus insuring against the risk of longevity. A pension created by an employer for the benefit of an employee is commonly referred to as an occupational or employer pension. Labor unions, the government, or other organizations may also fund pensions. Occupational pensions are a form of deferred compensation, usually advantageous to employee and employer for tax reasons. Many pensions also contain an additional insurance aspect, since they often will pay benefits to survivors or disabled beneficiaries.  Common uses of the term pension is to describe the payments a person receives upon retirement, usually under pre-determined legal and/or contractual terms.

What do I need to know about my Plan?

    You need to keep up with the paperwork from your company if you are part of the pension plan.  By doing this you will have a fairly certain idea of what you pension will look like at retirement.  You will have options and in most cases you have a choice of a single life annuity, a joint and survivor annuity, and percentage joint and survivor annuities.

What some common things about a pension plan that I should know?

    The monthly pension is generally only for an employee or an employee's spouse, so they cannot be passed to children.  Pensions are in a bit of trouble in the United States right now.    There has been some failures and benefit reductions.  A major factor of stability is the manager[s] of the pension fund, and how well they have done. 

     A very big decision is:  1] When to take the Pension?  2] Should I take an individual or Joint and survivor annuity?  3] Should I take the monthly pension or roll it over?--if that option is available.

     Contact us for a no obligation conversation.  We are not high pressure.  We are here to serve you.

    At CG Financial Consulting we take a look at your investments, insurance and liabilities, and make a comprehensive financial plan to meet your goals and what you want to achieve. There are no yearly fees or percentages that some planners charge. We charge by the hour or by the plan, there is never a conflict of interest.