How to Make the Most of your Pension Plan

Risk Management Financial Planning

How to Make the Most of your Pension Plan

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Whether you’re confident or concerned about your company pension — or if you don’t have one — these tips will help you boost your retirement savings.

Headlines about troubled company pension plans may have you thinking about your own plan, if you have one. Here is a guide to the differences between the 2 major types of pension plans, along with some tips to help you boost your retirement savings, whether you’re supplementing a company pension or building your retirement fund in the absence of one.

Pension plan trends

If you don’t have a company pension plan, you’re not alone. A  2011 Statistics Canada study found only 37% of male workers and 40% of female workers aged 25 to 54 had registered pension plans.

Company pensions are typically 1 of 2 types: either defined benefit or defined contribution

According to Statistics Canada, 84% of Canadians with a company pension plan in 1960 had a defined benefit plan. Another 14% had a defined contribution plan, and the rest were in hybrid or “other” plans.

Fast-forward to the 2010s, and the balance has shifted significantly.

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