There are a number of defined-contribution plans for workers, including 401(k)s and IRAs. Though there can be significant benefits to these plans, you likely watch your retirement savings fluctuate as the economy does the same. While these savings typically grow over time, the gains are modest. And if there are catastrophic economic losses, your retirement savings may very well see a dramatic hit as well. Pensions, meanwhile, are far more secure. They are independently insured by a government agency. The long-standing backing of pensions has allowed workers to feel trouble-free for some time, especially government-employed workers.
However, nothing is guaranteed. It is may be in your best interest to diversify your post-retirement income and your savings in as safe as manner as possible. Even the best pension should not be considered your entire safety net. If you or your spouse is a local or state government worker, Social Security benefits at retirement will likely not apply to you.
You may wish to explore contributing to a 403(b) or 457(b) supplemental retirement plan or your own IRA. Speak with an estate planning attorney to determine how you can contribute to your pension fund and an individual retirement account to best secure your future.
Christopher J. Berry is a Michigan estate planning attorney and Medicaid planning lawyer dedicated to helping seniors, veterans and their families navigate the long-term care maze. To learn more visit http://www.theeldercarefirm.com/ or call 248.481.4000