With the ever-changing job market and economic landscape, it is more important than ever to have a strong supplemental pension plan in addition to your traditional retirement savings. Supplemental pensions, also known as voluntary or non-mandatory pensions, are becoming increasingly popular as workers look for ways to secure their financial future beyond what their employer offers. But with recent changes in regulations and the rise of the gig economy, it is time to take a closer look at how you can make the most out of your supplemental pension.
One of the biggest changes in supplemental pension rules is the introduction of the SECURE Act. This act, which was passed in December 2019, aims to provide more opportunities for workers to save for retirement by making it easier for employers to offer retirement benefits. One key aspect of the SECURE Act is the elimination of the age limit for traditional IRA contributions, allowing workers to continue saving for retirement well into their 70s. Additionally, the act requires part-time workers to become eligible for employer-sponsored retirement plans, giving them the opportunity to save for their future.
Another important rule to consider is the rise of the gig economy and how it affects supplemental pensions. With more workers taking on freelance and contract work, it is essential to understand how these types of income can impact your pension contributions. Some platforms, like Uber and Lyft, offer their drivers the option to contribute to their retirement
Leave a Reply