NY attorney general urges Congress to keep pensions crypto-free — ‘No intrinsic value’
New York Attorney General Letitia James has sent a letter to US congressional leaders urging “common sense” federal crypto regulations ...
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Tag: pensions
Pensions are a crucial component of retirement planning, providing individuals with financial security and peace of mind during their post-working years. A pension is a fund that is set up by an employer to ensure that employees receive a regular income after they retire. This income is typically based on a combination of factors, including the employee’s salary, years of service, and contributions made to the pension fund.
There are different types of pensions, with the most common being defined benefit and defined contribution plans. In a defined benefit plan, the employer guarantees a specific amount of income to the employee upon retirement, based on a predetermined formula. On the other hand, in a defined contribution plan, the employee contributes a certain amount of money into the pension fund, and the eventual payout is based on the performance of the investments made with those contributions.
Pensions play a crucial role in retirement planning, as they provide a steady stream of income to retirees, helping them maintain their standard of living and cover essential expenses. In addition, pensions offer tax advantages, as contributions made to the fund are often tax-deductible, and the growth of the investments within the fund is tax-deferred.
It is important for individuals to understand their pension options and make informed decisions about their retirement savings. Employers also have a responsibility to ensure that their employees have access to retirement benefits and are provided with the necessary information to make the most of their pension plans.
Overall, pensions are an important tool for ensuring financial stability in retirement and should be considered an essential part of any comprehensive retirement plan. By understanding the different types of pensions available and how they work, individuals can make informed decisions about their retirement savings and plan for a secure future.
What is a pension?
A pension is a retirement plan that provides a fixed sum of money regularly paid to a retired employee.
How does a pension work?
Employees contribute a portion of their salary to a pension fund during their working years, which is then paid out as retirement income.
What types of pensions are there?
There are defined benefit pensions, where the payout is predetermined, and defined contribution pensions, where the payout depends on contributions and investment returns.
When can I start receiving my pension?
The age at which you can start receiving your pension depends on the terms of your specific pension plan, but it is typically around age 65.
What happens to my pension if I change jobs?
If you change jobs, you may be able to transfer your pension to your new employer’s plan or leave it in the existing plan to continue growing.
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