How to Protect Your Pension16 Apr
Individuals with a money purchase scheme whereas the employee pays into their retirement fund are at the most risk. The reason this is true is that the money you place into your retirement is normally invested in the stock market. When the person retires the money left in the retirement fund is used to purchase an annuity that will provide an income for the retiree’s life.
However, with the problems in the stock market, this money may be quite a bit less than you might imagine. A matter of fact your pension plan may have fallen 20%.
You can choose two different options to save your pension. First, take the money out of the retirement fund and purchase an annuity now. However, you will have to try to live on a smaller income. The other option is to leave your money alone with the hopes that the stock market will improve. With this option, you will need to work a few more years or withdraw 25% to live on for the time being.
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