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Understanding and Optimizing Your Pension Benefits

In this episode of Blue Collar Wealth presented by Stone House®, join Bob Brown, CFP® as he talks about one of the most important parts of your retirement plan: your pension.

A pension plan is an employee benefit that commits your employer to regularly contribute to a pool of money set aside for your retirement. There are two main types: defined-benefit plans, which guarantee a specific monthly payment for life after retirement, and defined-contribution plans, where you and often your employer contribute to your pension account, but the final benefit depends on investment performance.

Your pension plays a significant role in retirement income planning. Knowing your monthly pension income helps you budget effectively and impacts decisions like when to claim Social Security benefits. Defined-benefit plans provide a predictable income stream, while defined-contribution plans require more careful planning due to their variable outcomes.

Let’s talk about strategies for optimizing your pension benefits:
Maximize contributions
Understand vesting
Lump-sum vs. Annuity
Important considerations:
Tax implications of pension income
Maximizing social security alongside your pension

Understanding and optimizing your pension benefits is essential for a secure retirement. At Stone House, we specialize in helping our clients build financial security and that priceless peace of mind that allows for greater happiness in retirement. Request an appointment with a Stone House Advisor to get started.   

Thanks for watching!  

We’ll be back next Wednesday with a new episode, so stay tuned. 

Timestamps:
🕒 00:00 Intro
🕒 00:35 Why is a pension important?
🕒01:35 What is a pension?
🕒01:52 Defined-benefit plan
🕒02:13 Defined-contribution plan
🕒02:25 Impact on income planning
🕒04:52 Strategies for optimizing pension benefits
🕒05:02 Maximize contributions
🕒06:50 Understanding vesting
🕒07:47 Lump Sum vs. annuity
🕒09:22 Tax Implications of pension income
🕒11:14 Maximizing Social Security alongside your pension
🕒11:35 Conclusion

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