To properly plan for retirement, you need a good idea about how much your workplace pension plan will contribute to your financial security.

There are several issues to take into account:

• The number of years until you plan to retire
• The amount of your annual pension plan contributions
• Your salary projections for the years until you retire (if contributions are a percentage of your earnings)

What type of pension plan do you have?

• With a defined benefit plan, your pension is determined by a formula, usually based on earnings and years of participation.
• With a defined contribution plan, your pension depends on the amount of contributions and the success of the plan’s investments.

If you belong to a defined contribution plan, it’s important to look carefully at what you have today, as well as your plan’s investment track record.

Generally, members of a defined contribution pension plan can choose how contributions are invested — usually through a choice of tax-sheltered, professionally managed investment options ranging from conservative to high growth. Most plans allow you to change investment options.

Talk to an advisor about steps you can take to help ensure your overall retirement income meets your needs.

The information contained in this article was obtained from sources believed to be reliable; however, we cannot guarantee that it is accurate or complete. This article is provided as a general source of information and should not be considered personal advice.