“6 Reasons Why A Retirement or Retirement Plan Should Be At The Top Of Your Wish List”

When looking for a new job opportunity, comparing your potential benefits packages is crucial. For some, a remote work model and dental insurance are non-negotiable, while for others, higher wages outweigh cheaper gym memberships.

While these perks are important and play a role in cultivating work-life balance, an often-overlooked but very valuable benefit is the employer retirement plan.

Even if retirement seems far away, it’s never too early to start building a financially secure future. And here are six reasons why putting a retirement and retirement plan at the top of your wish list is a smart move.

Employer grants can give you more money

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One of the biggest perks of getting a job with a retirement or retirement plan is that your employer could reward you by doubling your contribution, essentially doubling your money.

Once you’ve found an employer with a pension or retirement plan, ask them if they offer a contribution subsidy. Aside from helping you build money faster, who can say no to free money?

You have the freedom to choose how and when to retire

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With a solid figure in your pension fund, you have the option of taking early retirement. If you’re within 10 years of your plan’s retirement age, you can take steps toward the next phase of your life (like travel, work part-time, or full-time for a hobby) with the confidence that you’re doing well financially.

If you’re in your 20s and like the sound of that kind of freedom in your future, finding a job that gives you a retirement or retirement plan now can help.

You can start earning that sweet compound interest

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You often hear that it’s important to kickstart your retirement savings early, and a key factor in that is compound interest.

Compound interest is earned on the interest already paid, and the longer you leave your money invested, the greater the payout. Employer pension plans can help you build retirement savings, but you need to start as soon as possible if you want to reap the most benefits.

You can secure your income for life

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For some, thinking about the future is a stressful mess, with money being a key concern. You can alleviate some of that stress by making sure you and your family are prepared for a healthy financial future.

This is where retirement plans come into play. When fear of the future kicks in, you can breathe a sigh of relief knowing that you’ve already taken a step toward sound financial planning for retirement.

Your money is safe, even from you

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Depending on the plan you set up with your job, it’s usually not possible to withdraw money from your pension for anything other than retirement.

This is one of the reasons retirement plans are so effective. If you tend to make hasty financial decisions, this will help protect your money until you really need it.

Finding a job that offers a retirement or retirement plan may not be high on your list right now, but the benefits can still pay off after retirement.

February 16 is Pension Awareness Day and the Financial Services Regulatory Authority of Ontario (FSRA) wants to encourage Canadians to keep their retirement plans in mind when looking for their next role.

Even though they may feel light years away, preparing for your golden years is one of the best things you can do as a young person. If you’ll be retired in 30 years and sitting on a beach sipping your umbrella straw drink, you’ll be glad you did.

To learn more about Canadian pension plans, visit the Financial Services Regulatory Authority of Ontario’s website and follow them on Facebook.

This content is for general informational purposes only and does not constitute financial, investment, legal, tax or accounting advice.

Source: www.narcity.com