Tips for Defined Contribution Pension Plans

Tips for Defined Contribution Pension Plans

Pension plans help you save for the future and meet your retirement goals. It’s important to maximize your pension in a defined contribution (DC) plan, so you can make the most out of your pension and get the best results.

Here are three tips to help you maximize your pension:

• Join your company pension plan

It’s important to invest in your future and joining your company pension plan is a great way to save for retirement. Take advantage of this opportunity to help you meet your financial goals upon retirement. 

• Put in the maximum amount

In a defined contribution plan, the employer will set the employer and member contribution rate. It’s a good idea to make the highest pension contribution that your plan allows, if you can afford to. In some plans, the employer will match up to a certain amount of what a member contributes.  Understand what your plan says, so you are putting as much as you can towards your retirement.

• Make sure your investments are the right fit

Make sure you are comfortable with your pension investments. Most plans offer a selection of funds so it’s important to know your options. Think about the length of time to your retirement and your risk tolerance, and choose the most suitable investment option for you. Consider obtaining financial planning advice from a qualified advisor and contact your plan administrator if you have any questions.