Simply put, a retirement plan is a strategy that you set to prepare you for a healthy financial life after you stop working. A survey conducted recently indicates that one in every three Americans has no retirement savings of any kind, and that over 50 percent are not confident they are saving enough. And there’s more; over 55 percent have less than $10,000 retirement savings. Bleak, right?
Who Needs the Plan?
Everyone needs to prepare for retirement. Whether you’re an employee, self-employed, or a business owner who wants to better prepare their retirement, a pension plan is inevitable.
How does it Work?
Depending on your plan of choice, you can decide the amount you want to contribute towards your savings account on a regular basis.
Types of Retirement Plans
Popular retirement plans include individual retirement plans – sponsored by individuals to earn retirement funds, employer funded retirement plans – partly or wholly funded by your employer from your salary, and retirement plans for business owners and self-employed persons.
Key Benefits of a Retirement Plans
Nobody likes to be caught off guard in life aspects, and especially when it comes to finances. The plan will provide you with the following benefits:
Financial security – after retirement, you don’t have a regular source of income. Here is when your pension plan saves the day by offering you income.
Provision for your family – retirement plans allow you to continue providing for your family even after you no longer have work or even in your absence.
Comes with tax benefits – not only does it help secure your future financially, but a pension plan will also help you reduce on tax deductions
Ability to choose from several approaches – since there are a variety of such plans in the market, you can select what will favor you. Each plan varies regarding returns and payouts.
You cannot afford to proceed into the future without a retirement plan. Choose an option that suits you and secure your financial future.