subject: Intelligent saving for your retirement years [print this page] It is known that your retirement years should be the most rewarding and relaxing years of your life. With sufficient amount of money, you can really look towards a stress free life full of happiness and leisure after you wind up your profession.
It's really never early to start making investment in your retirement years. Many sensible financial advisors would tell you to begin making investment in your retirement immediately on the receipt of your very first pay cheque! A timely and proper retirement saving plan would ensure you adequate funds in your twilight years.
We're discussing here few retirement schemes:
Provident fund
It is a sort of saving account which is made up of contributions from you in the years when you were working, apart from the matching contributions from your employers.
On attaining retirement, you can get the total value of your saving from the fund in the cash. Alternatively, you can decide on converting your capital in savings into annuity from the insurer you would select. There is tax free transfer of funds from savings to purchase the annuity but payments thereafter would however be subject to any prevailing PAYE and SITE conditions at the payment time.
Pension fund
The pension fund is an investment asset pool which is developed by the employer. You and your employer will make contributions to
erect this fund for long term durable growth. The funds which accrue here will generate pension for you once you retire.
Preservation funds
It is not allowed to withdraw any amount from the preservation fund till you reach your retirement age. In case of your death before the age of retirement, your nominated beneficiaries will get the full amount, after any necessary tax deductions.
Retirement annuity
A provident fund or pension is actually a long term solution of doing savings for your retirement years. The retirement annuity ensures that you will in any way never outlive your assets. These insurance programmes would give you an income stream for your lifetime from the pension stream.
The subscribers to the retirement annuity are not subjected to any yearly contributions and can invest as per their desire. It also does not have any particular age for the withdrawal and investors can postpone payments till they are required.
Just maintain your complete independence and then experience the great financial freedom in your retirement years, by making savings for your retirement. There are several retirement plans available to you in USA. We suggest you to seek a professional advice from them to secure your financial future.
Intelligent saving for your retirement years
By: Michael Miller
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