Pension plans are a common retirement plan for many Americans. In this video, learn how pensions work, how to get one, and what they can do for you in retirement.
- If you work in the public sector, … there's a good chance your employer offers a pension plan. … And although it's much less common than before … some companies offer pension plans as well. … In this lesson, I'll share how pensions work … and how to estimate your future benefits. … A pension plan is a retirement program … offered by your employer … that guarantees an amount of income … to you each month in retirement. … Instead of offering an opportunity … for you to invest towards retirement … and take whatever's left in your account … when you retire, … the way a 401k or a 403B works, … a pension plan provides a guaranteed income amount … based on your years of service, your compensation … and a percentage that they assign … which is sometimes based on your age when you retire. … Pension plans have a formula that they use … to determine what your future benefit will be. … For example, your employer's pension formula … might look something like this: … your average final three years of compensation …
This course was created by Madecraft. We are pleased to host this training in our library.