A pension is a valuable savings tool and a crucial part of a solid financial portfolio for many people. A retirement plan through your employer is one of the tools that can help you keep control over your finances and leave you more comfortably prepared for the years ahead, no matter how long or short they might be. Pension Times is a great place to start and help guide you in the right direction.

How to calculate how much you need to save per month for retirement

You’ve probably heard that you need 10 times your annual expenses to retire. That’s good advice, but is it the only kind?

The truth is much more complicated. The real answer is that it depends. It depends on how much you expect your investments to grow, and on that, on how much you expect your cost of living to grow. You can calculate the annual expenses of your retirement, and they will include everything from your rent or mortgage to the cost of your mobile phone and your electric bill. To calculate how much money you need to retire, add up your needs, add 50 per cent to that, and subtract that number from 100. That number is the percentage of your income you should save each month.

Explore different pension plans

There are plenty of people who are keen to get extra help in saving for retirement. But at the moment, there is no single pension plan that just about everyone can depend on. The problem is that most people have different ideas about what they want their money to do.

A pension plan is any retirement plan that provides some type of guaranteed income at retirement. Most pension plans are defined contribution plans. This means that the employee contributes money to the pension plan each year, and the employer matches those funds. The employee gets to decide how to invest the money, and the employee also gets to choose how much money they want to receive from the pension plan at retirement.

There are two general types of pension plans: defined benefit plans and defined contribution plans. In a defined benefit pension plan, the employer promises to pay the employee a specific amount at retirement. The amount of that payment depends on how often the employee has worked at the company. Defined benefit pension plans are sometimes called “defined contribution pension plans” because they provide a specific amount at retirement. Still, the amount depends on how much money the employee has contributed to the pension plan.

In a defined contribution pension plan, the employee decides how much to put into and how much money to withdraw from the pension plan. The amount of the employee’s pension depends on how much money the employee has contributed, how much money the employee has received in the pension plan, and how much money the employee decides to withdraw.

Pensions vs. RSPs/Tax Free Savings Accounts

What’s the difference between a pension plan and a Registered Retirement Savings Plan (RRSP)? A pension plan is a contract between you and an employer in which you agree to provide the employer with a certain amount of income when you retire. The employer agrees to provide the money by paying you a higher salary than your regular pay. Workers pay income taxes on this higher salary, and the employer pays income taxes on the money it pays you.

A Registered Retirement Savings Plan (RRSP) is a contract between you and a financial institution in which you agree to provide a certain amount of money to the financial institution when you retire. The financial institution pays you a salary that is higher than your normal pay. The financial institution pays you more money than a pension plan. The financial institution pays you money tax-free, either because you have paid income tax on it or because your employer has deducted the income tax from the salary.

You can contribute money to your RRSP, and perhaps to your pension plan as well, up to the annual amount allowed by the law. The total amount of money you can put into your RRSP, plus your pension plan, plus any employer contributions, should not exceed your income for the year. You receive the money from your RRSP tax-free when you retire.

The money in your RRSP is your money, not your employer’s. The money in your RRSP is yours to do as you please. You can use it to buy a home, start a business, or start a charity. The money in your RRSP is not counted as part of your income when you file your taxes, and it does not count as income when you measure your assets when you die. The money in your RRSP is locked away until you retire. You can neither spend it nor borrow it. You can withdraw it only after you reach age 71.