Why Pension is Your Answer You are finally settled into your career happy with all of your accomplishments and goals you have set. Your future is looking brighter than ever until you realized that you have not made plans for you and your family when retirement comes. “How will I pay my bills, eat, and go on that trip we have always talked?” Well I have good news for you. You do not have to worry. There are different ways to plan for your retirement. Today I will tell you about what a pension plan is, why you should choose pension over other retirement options, and what possibilities you will have once you choose to get a pension plan. To begin, what exactly is a pension fund? According to Hubbard and O’Brien a pension fund is “a financial intermediary that invest contributions of workers and firms in stocks, bonds, and mortgages to provide for pension benefit payments during worker’s retirement (pg. 334).” Your pension can be set up depending on many different things such as how long you have worked for a company, what your salary is, how old you are when you retire, or how much you and/or your employer put in to it based on a percentage of your …show more content…
Also, “Pension funds are the largest Institutional participants in capital markets (Hubbard and O’Brien 334).” In other words if you choose to get a pension plan you will receive benefits such as not claiming what you put into your pension as part of your income for that period which will help you when doing you taxes. Also, may have the opportunity to have life returns, meaning you will never have to worry about running out of money Some of these things may very base on your employer, but most likely you will get to experience more or less of these