Most of us work hard for a living. We want to live a comfortable life. We also want to be able to enjoy our retirement years.
Many employers set up pension funds for their employees. Funds are added to the pension during the person’s employment on a regular basis. Upon retirement, the person can start to withdraw those funds periodically. An employee usually has to be with their employee from anywhere to about three to ten years to qualify for a pension.
When an employee is considering retirement, they can start filing pension claims. Pension claims can be requested as much as 13 weeks before the person is of retirement age (which is usually age 65 in most cases). Pension claims can take anywhere from one to three months to be processed depending on when the last employee contribution was made and the appropriate paperwork was processed.
Waiting for pension claims is a common complaint. Here are a few ways to make pension claims easier:
1. Use your own savings.
One of the most common ways that people earn some extra money for retirement is by using their own existing savings. Instead of waiting weeks or months to find out if their pension claim was approved, they can take money that they may have in an individual retirement account or savings account to buy an annuity. Annuities pay a certain amount of money every year for the rest of your natural life.
2. Delaying your retirement benefits.
Another way to start receiving additional retirement funds is by delaying your retirement benefits. If you you choose to retire at age 67, you can use your current savings to buy an annuity that would pay annually for three years until Social Security kicks in once you reach age 70. This gives you an additional three years of retirement income. Also, your Social Security checks should be larger because there’s less time to pay out the money that you’ve earned from working.
3. Include your spouse.
If you are married or in a domestic partnership, consider pension options for both you and your spouse/partner. Pensions can be established to pay either you or you can select a joint or survivor option. This option pays a certain amount every month as long as one of you is still alive.
4. Other forms of retirement savings.
There are also other forms of retirement savings. Some of the more popular choices include:
– Certificates of Deposit
– Savings accounts
– Brokerage accounts
– Life insurance policies
These and other forms of income (including side jobs or work from home opportunities) can provide additional revenue while you’re waiting for your pension claim to be processed.
A pension can be a wonderful benefit for many employees. It’s a reward for years of dedication and service. Once the pension claim is approved, you start receiving regular payments for the rest of your life. You can set aside that money for expenses, or take that vacation you’ve been planning for years. You can also set aside some money to purchase a home or contribute to your grandchild’s college education. Whatever you decide, having a pension plan in place is important for ensuring your financial future upon retirement.