Pension planning 101

Effective pension planning is the key to enjoying comfortable retirement.

11:15 13 August 2013

Planning for your retirement cannot be more important these days. If you want to have comfortable golden years it is important that you make necessary preparations as soon as you can.

The first thing that you need to do is to know the terms of your pension. Keep in mind that different types of pension come with different benefits, features, and limitations. Be familiar with the terms and make plans accordingly.

There are different types of annuity that you can buy using your pension fund. There’s immediate annuity, deferred, annuity certain, guaranteed period annuity, life annuity, etc. The key here is understanding exactly what they offer and choose based on your preference and special circumstances. If needed, seek assistance from independent financial advisors who can help you make well-informed decisions.

When it comes to retirement funds, perhaps you could look into put some money in a high-interest savings account or invest in the stock market or mutual funds to improve your earning opportunity.