Pros And Cons Of Pension

Pension 2

A pension is a type of retirement security for individuals that work. It is a set amount that is paid to a person that is retired from their job on a monthly basis. A pension can be set up through various avenues, such as government institutions, employers and insurance companies. The goal is to be to provide income doing the time a person is retired. Usually when an individual is working, it becomes part of their benefit package. This is where the employer and the employee contribute financially to a pension plan, in order the employee to have money for retirement. Planning retirement is not an easy task, due to the change in the economy and the cost of medical insurance. Even social security of some Americans are being threatened due to government cut-backs. There has been a growing concern for public sector employee pension and public employee pension affects so many areas. According to Berman, the public sector at all levels of government has been more reliant on defined-benefit …show more content…
I do agree that employees need to invest in part of their retirement and not all should be place on the employer. Though there should be some safeguards in place to alleviate a great loss, in case of unforeseen changes in the market and the economy. Also educating everyone involved with tools they may need to understand the investment and financial aspect of having a retirement plan. Federal and state government should work together in an adequate and timely fashion to put together a reform that is beneficial to all. We have seen in the past where retirement plans could provide adequate income for retirement but people have made bad