Don’t Count on Your Pension: Why It’s Important to Have a Retirement Plan

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You work hard all your life being a dedicated employee, giving your time and resources to your employer. Surely you can count on them to take care of you when you retire, just like you took care of them when you worked, right? After all, they did promise you an attractive pension plan.

Unfortunately for many retirees, they are learning that this isn’t exactly the case, and that what they were promised doesn’t look anything like what they have ended up with.

Lately, it seems that not even the big corporations are immune to pension cuts. Companies like UPS, Lockheed Martin, the Boston Red Sox, and more are making changes to their pension plans. Whether these companies were simply ill-prepared for the volume of baby boomers set to retire, or whether Congress approving pension cuts had anything to do with it, the end result is the same – retirees everywhere are facing reduced pension benefits, and new employees are no longer given the promise of pension.

So what can you do to ensure you have enough when you retire?

While there is no guarantee that you’ll have what you need, unless you’re a billionaire, there are a few things you can do now to help insure a comfortable retirement.

Investments

Aside from your pension, what other investments do you have? Are you taking full advantage of the opportunities available to you, such as the 401k plan where the company matches? What other investments would be appropriate for you?

If you’re unsure of where to start, contact a certified financial planner. They can help you understand your options and come up with an investment plan that makes sense for the kind of future you envision for your retirement.

Long Term Care Insurance

Aside from growing your money, long term care insurance is another way you can “save” for retirement. This type of insurance pays for care services, facility costs, and other items not covered by health insurance, Medicare, or Medicaid.  Long term care is costly and expensive, and having insurance to help reimburse costs can help you to preserve your money so that your funds can last a lot longer.

See a Professional

There are many different professionals who can help ensure you enough during your golden years. While a certified financial planner can ensure you have your finances and investments in order, you may wish to see an insurance specialist about long term care and other insurances available that can help preserve funds. Similarly, you may wish to visit an elder law attorney to get your end of life documents in order, such as a living will and health care surrogate, and to make sure your will and estate is in order when you pass away.

While there is no guarantee that you will have enough when you retire, having investments, long term care insurance, and a team of professionals helping you along the way will giving you a fighting chance at having the type of comfortable retirement that you desire.

 

 

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00a7e40This blog is shared by Theresa Barton, the expert behind The Guardian Network with more than 25 years of experience in the field of Elder Advocacy, Care Management and Guardianship. Learn more about Theresa’s work and resources for families, caregivers and health, support and legal professionals here.

 

 

 

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