Getting a pension is possible in two ways – either you find an employer which can give you one, or make a pension of your own. To find out how you can do so, continue reading this article.
Getting a pension by working in companies
A pension is a form of retirement income, which is given to an employee by his employer if ever he has been able to meet all the required qualifications. Of course, you should be under a certain company for a required number of years for you to be eligible for a pension benefit. For you to get your pension, you should look for an employment with a company that features pension benefits to its employees.
You then need to work for several years just to get eligibility for these benefits. Some good examples of these include government jobs, military, fire department and the police. There are also those large companies, which offer pension benefits, yet you can’t expect to get the same benefits offered by government firms.
Making a pension of your own
Creating a pension of your own is not just possible; it is also advantageous at the same time. Once you have decided to retire, you can make use of the savings you have – these include your money in a 401k plan or IRA. After that, you simply have to purchase an immediate annuity which will be the one to pay you an income which you would be receiving your whole life. Through this, you can then have a pension that is created by you.
Other than that, you can also make your own retirement income by delaying the start date of your Social Security benefits. This means that when you decide to retire at the age of 65, you could use your savings to buy yourself an annuity, which could provide you an income stream for 5 long years. Then by the time you reach 70, you will then begin using your Social Security benefits, which amount would then be multiplied than it is when you start using it by the age of 65.
Regardless of your choice, you should also consider your other half (if you are married) when making decisions for your pension. You could opt for either a pension which only you can benefit from, or an option which is both shared by your partner. Either way, both of these options could provide you with an income stream for as long as you live.
Tell us how you got your pension. Did you work for the government in police, fire, or other functions? Did you work for a big company? Let us know in the comments below.