Make Voluntary Contributions to Maximize Your Savings
Don’t rely on basic contributions to your plan. The more you put in, the more you get out. The law states that you can save up to 20% of your salary which means that your contributions and your employer’s contributions combined cannot exceed that 20% threshold.
What does that mean for you?
If your basic contribution is 5% of your salary, and your employer’s contribution is 5%; you are saving a total of 10% of your salary. You can therefore contribute an additional 10% of your salary to your pension savings. Double the savings = double the benefits. Have you ever met a pensioner who did not need more money?
Review your Annual Member’s Statement
Review and ensure that you understand what’s on the statement. Knowledge is power and if today you know where you are financially; you can better assess whether you are on track to meet your retirement goals for tomorrow. Periodic assessment will let you know whether you need to change course to meet them.
Most importantly though, seek advice as needed. If you don’t understand what’s on the statement or if you see mistakes on the statement, raise it with your plan’s administrator or ARS provider.
If you are not receiving statements annually, DEMAND IT! It is your right to receive them.
Know Your Pension Plan
In addition to knowing your Pension Plan, you also need to “know your pension plan”. In other words, you need to plan for retirement.
As the saying goes “A goal without a plan is just a wish.” Therefore, make a plan, assess it, and reassess the plan from time to time. Stick to it and in time you will reap the benefits of a pension plan that just right for you!