Pensions - What Should I Do ?

scenicruzer asked:


As part of a division of assets, I was required to split my company pension and transfer 50% to my ex-common-law wife. Can I deduct this from my income tax?
As part of a division of assets, I was required to split my company pension and transfer 50% to my ex-common-law wife. Can I deduct this from my income tax?
also, keep in mind this is in Manitoba/Canada.

Derek

true conservative asked:


The bill the president signed will make it harder for companies to make profits. If they are forced to pay these pensions to people, most companies will go broke. Why cant they just have the option of dumping them if they become to expensive?

Austin

Elizabeth Grant asked:


If you’re considering a pension transfer, then these tips could help you in the transfer process.

1.Find an Independent Pensions Transfer Advisor

Pensions law and regulation is so complex and changes so rapidly, that you really do need good advice when it comes to transferring your pension. An independent advisor isn’t tied to any particular product, and has access to all the information you need to make an informed decision. In addition, they will be aware of the latest changes to the pensions regulations, ensuring that your transfer falls within the rules. They can check the current value of your existing pension and compare it to the performance of other similar schemes on the market. Don’t transfer your pension without consulting an expert.

2.Check Benefit Levels

Each pension scheme has a different level of benefits. Whilst some are very generous, others are not, and you want to be sure that you are transferring to a pension that has equally good, if not better, benefits than your current scheme. Your pensions advisor can help you to check benefits levels and talk you through which are the most important to hold onto.

3.Growth Levels

If you are transferring a pension, there may be a period where the new scheme needs to grow to the size of your original pension fund. For this reason, you should ask your pensions advisor to check growth levels to see which funds are likely to return your investment to its current level the quickest.

4.Nominations

Make sure that you can nominate one or more beneficiaries for your pension scheme and that the pension fund manager will honour your nomination. If you die before retirement, your pension entitlement will be paid to your nominated beneficiary or to your estate. To make sure that your pension goes to the people you want it to, your nominations need to be accurate and, if necessary, you should reinforce them in your will.

5.Retirement Age

If you are transferring your pension less then 10 years before retirement, make sure that your new scheme gives you the same rights as your old one. If you are intending to retire early, ask your pension advisor to check the value of your existing scheme and the scheme you want to transfer to. This will help you to ensure that you have a good income on your retirement.

6.Management Fees

The pensions industry is competitive and one of the key areas where pensions schemes compete is the management fee. This fee is usually applied annually and is calculated as a percentage of your funds. Many people choose to transfer their pension in order to obtain a lower management fee, so you should make sure that the scheme you choose has a management fee you are happy with.

7.Review

If you are considering transferring your pension, ask a pensions advisor for a review of your current situation. Once you have transferred your pension, it may be worth asking for a regular review, particularly as you approach retirement age, so that you can be sure that your pension is working for you.

8.Administration

You will need to ensure that you have all the paperwork relating to your existing pension scheme before you transfer. This paperwork is important when it comes to any contact you have with the company operating your pension scheme, and your pension advisor will need it in order to effect the transfer. Similarly, when you get the paperwork for your new pension scheme, keep it in a safe place so that you can access it easily when you are coming up to retirement.

9.Target Income

If you are transferring your pension scheme when you are still a long way from retirement, you may want to look at the level of contributions you are making. Talk to your pensions advisor about your desired target income, which will help them to work out the payments you need to be making into your new pension scheme.



Matthew

Heather Eagar asked:


Planning for retirement is a crucial part of your life and career. Whether you are young - or not so young - you have to be sure to take the proper measures to ensure your financial future. It’s never too late to start, but you have to start now.

The 401(k)

A 401(k) is a great savings tool and a good way to start saving for your retirement, no matter what stage of retirement planning you are in. If your employer offers a 401(k) plan, you can have a pre-determined amount of money automatically withdrawn from your paycheck and deposited in your 401 (k) account.

Most employers have 401 (k) ‘matching’ - where the employer will match every dollar you invest into your 401(k) account with an amount, usually from .50 to $1. Perhaps the best part of investing in a 401(k) account is that you are not charged any taxes on the money until you actually withdraw it as you begin your retirement.

Most 401(k) plans offer first-time homebuyers the option to borrow against their 401(k) for a down payment. However, keep in mind that if you make any withdrawals before retirement for any reason, you will have to pay a penalty of 10% to the IRS. Therefore, you should only borrow against your 401(k) as a last resort.

If You Are Nearing Retirement

If you are nearing retirement, three factors that you need to keep in mind are that you can accrue social security benefits, savings, investments and lastly, pensions after retirement. If you want to take advantage of these, you need to apply for these retirement benefits at least three months in advance. At the same time, you may want to sign up for Medicare, which will help you meet your healthcare expenses.

Evaluate and determine your retirement needs in order to maintain the same standard of living that you have now. Find out if you are entitled to benefits from your employer’s pension or profit sharing plan. Sign up and contribute as much as you can, if your employer offers a tax sheltered savings plan like the 401(k). Keep depositing money into your IRA account, where it can grow, tax-free.

Make financial security your priority though proper strategic planning so that you can retire without worrying that you may not have enough money to last throughout your golden years.

Just Starting Out To Midlife

Successful financial planning for retirement requires careful and calculated planning on your part. Your savings and social security income are surely not going to last for a lifetime - and there’s talk whether social security will even be around at all. With this in mind, the best way to financially prepare for retirement is to start saving today so that you will have a more secure tomorrow. And you can easily accomplish this through diversified investing. Today’s financial market has various options available, starting from US Treasury bonds to stocks to mutual funds. If you are younger, say in your 20’s or early 30’s, then you may want to have more aggressive investments. People in their mid 30’s to late 40’s or 50’s may want a more moderate-risk portfolio. The key point to remember with any investment is - the higher the returns, the higher the risks.

No matter what your age is, you should seek the help of a financial planner, accountant or stockbroker who can counsel and guide you in the right direction. When it comes to retirement planning, the sooner you get started, the better off you’ll be.



Jada

sammy123 asked:


I was told that their are certain guidelines in place. The pension can only be spent on certain items.

Julian

Abbygyal asked:


Hi guyz, im doing a course now and i need to go into more details on some job roles. I would love to get a link explaining how long occupational therapists and nursing assistants have their holiday and if they are entitled to pension. Links would be very appreciated . Thanks.

Ethan