It is common when most people talking about Social Security, they are also thinking about retirement benefits (retirement planning benefit and retirement transition benefit). But about one-fifth of all the benefits of social security benefits are the surviving spouse. So, if you plan for retirement, it is important to plan for you or your spouse to social security spouse benefits at some point in their lives. Is it possible for a non working spouse who does not receive retirement income from Social Security, to collect as the income of her husband for? (more…)

For Early Retirement Incentive Plans within a defined pension plan, the most common incentive is the addition of age or service credits in calculating pension benefits. Typically, “5 and 5”—adding five years to age and/or five years to length of service—is offered. Other incentives may reduce or eliminate the penalty for early retirement, provide cash supplements until an employee is eligible for Social Security (in the main, at age 62, though some plans bridge payments to age 65), provision of life insurance, outplacement assistance, and less often, retiree health benefits (Hewitt Associates 1997). (more…)

Once the cash flows to be financed are determined, whether via a detailed version of the determination of planned expenditures or the simpler “rule of thumb approach,” the question of how each $1 of assets will be turned into an income flow must be addressed. How much income will each dollar generate, and for how long? This is the basic issue of longevity risk (the risk that a person will live either beyond, or not until, their “life expectancy”). This source of uncertainty presents perhaps the most significant challenge for cash flow planning in retirement. (more…)

Because in a defined benefit plan, the benefit relates directly to the number of years you work for a company, the longer you work there, the greater the benefit during retirement.

The cost of early retirement on your pension throughout the rest of your life is something to consider as you make a decision about when to retire. (more…)

Another old adage says that we should learn from the mistakes of others. When it comes to retirement planning, there are many legal, tax, and retirement saving mistakes you can make as a business owner, retirement plan trustee, or plan participant. (more…)

Defined benefit pension plans are retirement plans that are largely funded by employers and benefits are based on employee years of service, employee age and earnings. This type of pension plan has been declining in popularity, largely because the risk is mostly borne by the employer rather than the employee.

Contributions are largely made by the employer – for some employees this is definitely a pro, since the employer determines how much of a contribution is made and there are no caps on the total amount an employer can make to the plan annually. (more…)

Retirement planning is crucial thing in the pursuit of your interest and enjoying life after saying goodbye to your company. But you have to do some home work and preparation on retirement investment planning in advance. With proper planning and good execution, you can expect a golden phase of your life and continue living the lifestyle you have enjoyed. Saving and investing is the majority part of your retirement planning guide. The benefit of financial planning for retirement seems obvious. But you’re not the only the one who benefited from planning your retirement. Your employer and independent planners will also get some rewards from this. (more…)