Is there a difference in how public and private sector companies approach retirement benefits for their employees?
We found that within public sector companies, what is more popular is the defined benefit scheme wherein the risk is borne by the employer and the pension paid to employees is linked to the last salary drawn or the average salary of the last 12 months. Most private sector companies on the other hand have a defined contribution pension plan wherein a corpus amount is available to employees on retirement and the investment risk (because of unpredictable market) and longevity risk (pre withdrawal of pension savings) is transferred to the employee. What medical insurance would you advice to someone approaching retirement? Medical insurance is one of the most important investments for a retiring person as very few employers offer post retirement medical benefits. You can purchase medical insurance from life insurance companies or non life insurance companies though in both cases one should look at premiums and what is underwritten. Payment options should suit individual needs, be it indemni
Related Questions
- Is there a difference in how public and private sector companies approach retirement benefits for their employees?
- Lots of people in the private sector have been laid off–shouldn’t we lay off public employees too?
- How do the salaries and benefits of public employees compare to private sector employees?
