Pensions and floppy drives—what do they have in common? Both are going the way of the dinosaur so if you don’t want your retirement income to become extinct before you do the time to plan is now.
A pension is a type of retirement plan typically funded by an employer to provide a lifetime benefit to an employee, and his or her dependents, upon retirement. In years past, employees frequently worked for one employer throughout their career, retired around the age of 65, and often within just a few years they died. Sad, but true! Pensions are going the way of the dinosaur because they are expensive to administer and because they were never designed to provide an income for decades of life in retirement.
If you think your employer owes you a living, think again. Your employer may offer a defined contribution plan, such as a 401(k), into which you defer some of your hard earned money with each pay period but if you contribute nothing they will match you in kind. Remember, zero times any number is still zero and you’ll end up with one big goose egg in your retirement account. You have to pay now to play later so get in the game.
Schedule time to review your retirement plan options through your employer and take advantage of all the resources provided to you in terms of financial education. At least once per year you should be reviewing all your financial assets to be sure you are on track to meet your goals. And while you are at it, review your beneficiary designations on your retirement accounts and life insurance including both your primary and contingent choices. Perhaps you had named your former spouse when you were married but never changed it when you divorced. Your ex-spouse could laugh all the way to the bank if you die and they are still named as your beneficiary.
Just like physical fitness, financial fitness is not something you achieve overnight but, instead, with small changes to your overall program you may realize the retirement of your dreams. Even the longest climb begins with a single step, so start investing in your future today.
Securities and Investment Advisory Services offered through
American General Securities Incorporated (AGSI)
Member FINRA/ SIPC, Member American International Group, Inc.
GFG, LLC is a separate entity from any member of AIG. AGSI does not offer tax or legal advice.
Carol E. Arnott, Registered Representative, Investment Advisor Representative