Avoid This Common Mistake When Managing Your Defined Benefit Pension

If you have a defined benefit pension plan, it may come with a bridge benefit which is an additional payment that you receive when you retire until you reach age 65. A lot of people start their CPP & OAS when their bridge benefit ends, and for most people, that is not going to be right planning strategy. 6 ways to level up your financial plan: Personal Finance for Canadians for Dummies: Free Credit Report with Borrowell: Open an EQ Bank Account: Financial Calculator I use: Financial Masterclass for Canadians: 20% off an online Will at www.willful.co use promo code: PWFG If you have any further questions about this video's topic or any financial planning questions in general, I encourage you to find a certified financial planner in your area or book a consultation with us to get your savings plan on track.  You can learn more about our services at or email Info@Parallelwealth.com ----------------------------------------- DISCLAIMER: The videos and opinions on this channel are for informational and educational purposes only and do not constitute investment advice. Adam Bornn is not registered to provide investment advice and as such does not provide recommendations - those looking for investment advice should seek out a registered professional. Adam is not responsible for investment actions taken by viewers and his content should not be used as a basis for investment trades. #shorts #retirement...(read more)

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STOP Making This Defined Benefit Pension Mistake A defined benefit pension plan is a retirement plan in which an employer promises to pay a predetermined amount to retired employees for the rest of their lives. It differs from a defined contribution plan, such as a 401(k), where the employee contributes a portion of their salary to an investment account. While defined benefit pension plans provide a steady stream of income during retirement, there is one fundamental mistake that individuals often make when it comes to managing their pensions - assuming it will be enough to cover all of their retirement expenses. Many people make the mistake of relying solely on their defined benefit pension plan, without considering the rising costs of living or unforeseen expenses that may arise during retirement. By making this error, retirees risk facing financial difficulties later in life. To avoid this mistake, it is essential to take a proactive approach to planning for retirement. Here are some steps you can take to ensure you have adequate savings to supplement your pension: 1. Save early and regularly: Start saving for retirement as early as possible. By contributing to retirement accounts such as IRAs or 401(k)s, you can build a nest egg that will provide additional income during retirement. 2. Diversify your investments: It's crucial to spread your investments across different asset classes, such as stocks, bonds, and real estate. Diversification helps mitigate risk and potentially increases returns. 3. Budget and manage expenses: Analyze your current and expected future expenses. Create a budget that will allow you to live comfortably without relying solely on your pension. Minimize unnecessary expenses and ensure you have enough savings for emergencies. 4. Consider working part-time: Many retirees find it fulfilling and financially beneficial to work part-time during retirement. A part-time job can provide additional income to cover unexpected expenses or supplement your pension. 5. Educate yourself about retirement options: Understand the details of your pension plan and any additional retirement benefits offered by your employer. Explore options such as lump sum distributions or using your pension to purchase an annuity that can provide a more flexible income stream. 6. Seek professional advice: Consulting with a financial advisor who specializes in retirement planning can provide valuable insights and guidance tailored to your specific needs and goals. 7. Stay informed about your pension plan: Keep track of any changes to your pension plan and the financial stability of your employer. This will help you plan accordingly and make informed decisions about your retirement. By avoiding the mistake of assuming your defined benefit pension will be enough, you can take control of your financial future and ensure a comfortable retirement. Taking proactive steps, such as saving early, diversifying investments, managing expenses, and seeking professional advice, can significantly improve your retirement outlook. Remember, it's never too early to start planning for retirement, and a well-rounded approach will help safeguard your financial well-being in the long run. https://inflationprotection.org/avoid-this-common-mistake-when-managing-your-defined-benefit-pension/?feed_id=128031&_unique_id=64dcf9a506139 #Inflation #Retirement #GoldIRA #Wealth #Investing #bridgebenefitpensions #commutedvaluevslifetimeamount #definedbenefitpensionplans #definedbenefitpensions #FinancialPlanning #ParallelWealth #Retirement #retirementplanning #savings #TaxPlanning #wealth #RetirementPension #bridgebenefitpensions #commutedvaluevslifetimeamount #definedbenefitpensionplans #definedbenefitpensions #FinancialPlanning #ParallelWealth #Retirement #retirementplanning #savings #TaxPlanning #wealth