Main Reasons why You Don’t have a Pension

Many of those who are on the verge of retirement worry about not having a proper pension plan. Here’s a guide as why they don’t have a pension plan.

There can be several reasons why your employer is not guaranteeing a pension for you. Many workers who are all set to retire wish that they had a traditional pension. They know that the poorly funded 401(k)s are not going to give them what they are looking for. However, only few workers get to enjoy a good pension system that guarantees regular payment. Only less than one third of the total work force was allowed to have a regular pension in the past few years. Moreover, only 28% participated in this. So, what are those reasons that come in the way of walking away with a normal pension? Well, let’s take a look below.

Not having a union card

Yes, if you do not belong to a union, it would be increasingly difficult to have a pension. When you have a union card, chances are high for you to have a traditional pension plan. Only 82% of union members get to access traditional pensions. When it comes to those who do not belong to a union, only 21% have access to pension. Well, you need to realize the fact that unions will do a good job in negotiating a pension plan for most of their members. So, if you are worried about a proper pension plan, we advise you to be part of a union as soon as possible as it can be really helpful.

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You are not a government employee

Well, if you are a government employee, it won’t be that difficult for you to have traditional pension. Otherwise, it would be really difficult. Most of employees who work for the state and local government managed to walk away with a good pension plan. Studies show that more than 84% enjoyed a pension in this manner in 2010. As for those who work in the private sector, only 20% of the workers got regular pension. There are several benefits when it comes to a pension plan like this. For those who are looking for more information on the Pension Schemes in US, click here for more information.

You are not working for a big company

Yes, in case if you are working for a small company, it can come in the way of getting a proper pension. When it comes to large companies, they offer generous retirement packages. When it comes to the case of big companies with more than 500 employees, they are able to offer a good pension plan to most of their employees. When it comes to companies with a small work force (for example, less than 50 employees), they are not able to guarantee a proper retirement plan to their employees. One thing you need to understand is that having a pension plan is a really complicated thing and not too many companies are able to handle it in the right manner. Small companies don’t want to go through the hassle.

You are working in a pension-less industry

Yes, this also could be a reason. There are several industries where you cannot expect to have a pension owing to the nature of the work they are doing. Let’s take the example of the utility and we can see how that works.


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