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    Posted on Oct 22, 2015

    Why A Pension Is The Best Plan To Save For Retirement

    Because you don't want your parents living in your basement.

    You’ve probably heard of a pension...

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    But do you know what it is?

    A pension is a defined benefit retirement savings plan. It provides retirees with a steady and reliable monthly payment in retirement.

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    The guarantee of a regular, monthly benefit ensures that aging individuals can cover the cost of basic necessities such as food, housing, and health related expenses: http://huff.to/1NknFDs

    When you’re sixty-four, you’ll be close to retirement and you’ll need your pension to provide basic income security during retirement.

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    When you know your retirement savings are taken care of, you probably feel like this:

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    Since you've been working 9 to 5.

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    With a pension, you contribute a little bit each paycheck and your employer contributes a little bit each paycheck, so during your career, you’re saving for retirement like:

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    Pension funding comes from three sources: employee contributions, employer contributions, and investment returns: http://bit.ly/1JXRnt8

    Even if you’re not as fabulous as Queen Bey, you’ve still gotta pay your bills and a pension can help you do that in retirement.

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    Women especially benefit from a pension, since their retirement income is only 59% that of men.

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    On average, women who retire from public service live off a modest but stable $18,000 a year pension: http://cnnmon.ie/1CUTURz

    This is how we all should feel come retirement day…

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    But if you don’t have any retirement savings, you might end up like this:

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    Unfortunately, the average working household has virtually no retirement savings: http://bit.ly/1LHY5oY

    And after a lifetime of hard work, nobody wants to end up like this in retirement:

    Universal Pictures / Via hellogiggles.com

    After all, everyone deserves to retire with dignity and enough money to get by... and maybe the occasional cheesecake.

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