There are over 10 reasons why you should join a pension scheme in USA.But we shall provide you the most important reasons so as to guide you choose between a pension scheme or annuity.
- Pension scheme are easy to join
To join a pension scheme, all you are required is to approach an insurance company that offers the service and request to be registered for the scheme. Registration takes some few minutes when you have the necessary document required.
- It doesn’t take much of your money
Pension scheme means you contribute periodically until the scheme matures. When you contribute, it’s even hard to notice that part of your money has gone into the scheme simply because it’s little.
- Secure your future
By investing your money into pension scheme, it means you secure your future. The amount you pay will greatly help you when you have no energy to work and retirement age has been achieved
- You will continue with your lifestyle after retirement
Upon retirement, your life won’t change as you will receive money from the pension scheme to help you keep your way of life.
- Lump sum amount for investment
Upon maturity, your pension funds will earn you enough money to invest. If you have never been a millionaire, this is the time you will receive the highest amount of money in lump sum.
- Your family won’t suffer
In case you die while under a pension scheme, your family will never suffer. They will be allowed to get access to the funds, withdraw it and have it for personal use.
Pension schemes have helped many Americans whose parents die of tragic accidents, chronic diseases or through natural attrition.
- It’s a genuine scheme
Pension schemes that are offered by insurances in America are not pyramid schemes, they are genuine. By joining the scheme you are confident that your money is secure.
- Your funds are invested wisely.
Another encouraging reason to join a pension scheme is that money you contribute is invested wisely. In most cases the money is invested in bonds, unit trusts, real estate and financial derivatives, which have low risks but high returns.
- Some employers contribute to the scheme
Another reason why you should join the scheme is that most employers contribute a portion of the money you are required to pay towards the scheme. This is encouraging because at the end of the day, you will earn more than you anticipated.
- Claiming your pension scheme funds does not involve long process
Pension scheme funds can be accessed at any time.so claiming it is not as hard as many of the employees in various companies would imagine. The moment your scheme matures, you will definitely receive your money.