Having a pension may sound simple, but they can be very confusing. It’s important to know which type of pension you have, as they are very different. There are two main types of pensions: a Defined Contribution Plan, and a Defined Benefit Plan.
A Defined Contribution Plan will provide you with pension income in retirement based on the number of contributions made to the pension on your behalf, and how much it has grown over the years.
A Defined Benefit Program will provide you with a specified monthly income in retirement, no matter how much has been contributed to the plan on your behalf.
When you know which type of plan your company offers, you can discuss your options with your financial advisor prior to retirement and find the best way to complement it during your working years.
If you have any questions about your pension or would like us to help you create the long-term retirement plan you need for a secure and happy retirement, reach out to us today.
– Spire Advisors of Assante Capital Management Ltd.
Office locations: Huntsville, Powassan, Parry Sound, Orillia, and North Bay