Category Archives: Pensions

We continue discussing the differences between the two types of pension income: Life Annuity and Life Income Fund (LIF) for our last post: Comparing the Life Annuity and the LIF – Part 1. Here are some more unique features of … Continue reading

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Like most things in life, there is always a trade-off choosing one option over another. There are two types of pension income options, being a Life Annuity and Life Income Fund. If you like the guarantees of the annuity option, … Continue reading

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Up until the early 1990s, the life annuity was the most common and to an extent, the only option for commencing income from a pension plan or locked-in asset. A life annuity is a stream of future payments composed of … Continue reading

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As you work throughout your life, you contribute to your pension plan to accumulate funds for your retirement. When the time comes to create income from this asset, the role of the pension plan actually ceases. As we’ve discussed, there … Continue reading

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We receive so much information everyday and when it comes to your pension statement, it is important to know what those numbers mean. Defined Contribution Plan Pension Statement In your annual statement, the account balance of he pension plan will … Continue reading

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Compared to a defined Benefit Pension plan, this type is far less complicated. In a defined contribution plan, the employee, employer or both contribute a fixed percentage of income. More often than not the contribution is 50% for both parties. … Continue reading

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This particular pension plan allows the plan member’s to know their financial benefit at the time of retirement. However, this plan does not know what the long term costs will be in order to achieve their guaranteed benefit. There are … Continue reading

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There are generally two types of pension plans, defined benefit and defined contribution, but each offer distinguishing features. Let’s explain simply the difference between the two: Imagine two friends, Sally and Christine who are at the beach and step up … Continue reading

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