What are some advantages and disadvantages of contributing to a pension scheme?
There are many different kinds of pension plans so you need to read up on the one you are considering. The three main kinds of pension plans are “Defined Benefit” and “Defined Contribution” and a personal IRA. Defined Benefit plans were created decades ago when workers tended to stay with the same company for life. The companies with this plan would tell their loyal employees that when they turned 65, the company will pay them a monthly amount from the pension funds until the employee dies. These plans are out of fashion at the moment because hardly anyone works at the same place for 40 years anymore. And if you left or were fired you got nothing. And if the company fails to put enough money aside to cover all their retired employees for life, you may get a fraction of what you were promised. Defined contribution pension plans are those that spell out how much you can contribute of your own money and how much the employer can and will contribute. There are two major advantages. First a
