Is your Pension Safe

AARP

AARP - Retirement Issues

Is your Pension safe.
The current financial crisis is having a knock on effect on pensions paid when you retire. Pension funds are invested in the market and if the market falls so does the value of pension funds.

Most pension funds were is surplus prior to last year, so there was no cause for concern, however now the situation has changed. for example

According to Mercer, a consulting firm, the stock market turmoil of the past year has left corporate pension plans at the largest companies under funded by $409 billion. At the end of 2007, those plans had a $60 billion surplus.

So What is the risk to your retirement pension if it is under funded, well a company has a few choices it can pump more money into the retirement fund to make up the shortfall or modify the plan benefits.

The problems with both state and company pensions is the "Baby Boomers" there are more people retired than there are contributing to a pension. this could cause a company to shut down it retirement plan. If a company shuts down its plan and the Pension Benefit Guaranty Corp agree to take it over. some Pensions would be reduced as they only guarantee the first 54,000 of annual pension benefits for workers who retired at age 65. Those who retired at an earlier age would get less. Those who retired at a later age would get more. For example, if you retired at 62, you would receive up to $42,660. they also do not guarantee the previous five years increases.

Some People may need to consider going back to work or starting a second job to maintain there lifestyle in retirement. One option to consider is set up a home business to make up the shortfall.

If you do not have enough money yet I can show you a business model prepared by economist Dr Raymond Jewel which can be customised to meet with your own circumstances and required retirement income. A live opportunity will be presented every Thursday at 6PM EST in our conference room at http://tomorrowshomebusiness.butchhamilton.com select room log-in from top menu and enter first and last names and the password success.

David Ogden
TriVita Independent Business Affiliate 13142173
Phone 1-386-308-1956
Skype Seadogs11
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