Unclaimed Pension: Retirement Plans-Benefits and Savings
By: Barbara M., Published: Mar 26, 2020 | Related: Unclaimed Child Support
Skilled employment positions often include the option of a pension plan. Most employees wisely take advantage of this employer-provided benefit. After an individual retires, he or she receives benefits from the pension, which can amount to quite a sum. It's possible to acquire more than one pension by working with for multiple employers over the years. Many individuals hold more than one pension by the time they retire. Undoubtedly, that's a nice situation to experience but does come with certain issues.
Perhaps you've worked for multiple employers and opted into multiple pension plans. In that case, you have to keep track of these pensions as you progress through life. Changing employers and moving to a new location can cause issues here. You might lose track of a pension plan, or you might lose contact information for its provider. After enough time has passed, you'll probably assume reacquiring the pension is a lost cause. Employees and former employees can indeed reacquire their pensions with the right steps.
Things like business acquisitions and business mergers can cause a few more problems. Nonetheless, you'll always have access to your old pensions if you take certain measures. You should never leave a pension behind because that can hurt you financially come retirement time. A little footwork might be required in order to find your old pension plans, but the payoff is more than worth the effort. Even a small plan can contain a lot of money after a few years, so you'll want to consider these pension tips.
Always Opt In!
First and foremost, you'll want to opt into your employer's pension offering. The employer typically pays into this plan over time as you work for them. This money adds up in a short amount of time, and you're entitled to the pension after enough time has passed. Luckily, it doesn't matter whether you work for that employer still, or not.
Keep Pertinent Documents
Never throw away documents related to your pension. Statements and other documentation contain all the information you need to keep track of the pension. With these documents, you'll have all of the information needed to contact the pension administrator. The ability to contact the administrator guarantees you'll always be able to access the pension plan.
Update Your Contact Information
If you own more than one pension, then you need to keep a list of those plans. You need to contact the pension administrator and update your contact information when necessary. At the proper date, an administrator is required to contact you for disbursement. That's an impossible task if your contact information is outdated.
Stay Updated On Your Pensions
You'll receive an annual statement on your pension while employed. However, an employer or administrator doesn't have to provide a statement after you leave that employer. You can easily request updates and statements from the pension administrator, though. They'll provide this information nine times out of ten, if you request it directly.
Transfer Your Pension
It's possible to transfer a pension from one employer to your new employer's pension plan. For many people, this move might make sense to consolidate pensions. You'll want to speak with your employer to ensure this option makes sense for yourself.
Get Help Near Retirement Time
As your retirement inches closer, you'll want to get financial advice sooner or later. A financial planner can help you figure out your retirement and pension plan benefits. This professional may even find your old pensions. Also, don't forget that state pension authorities can provide assistance on this matter as well.
Who else can provide assistance in finding old pensions?
At some point, you might consider hiring someone to find your old pensions. Doing so often produces results, but this option is not necessary. You can and should contact other resources to find these plans. For instance, your previous labor union often holds the information necessary to access a pension. Your old coworkers or current colleagues probably have the information you need to track down a pension, too. Never hesitate to contact the pension administrator for further assistance!
In the end, you don't have to forfeit your prior pension plans. These benefits will help you survive and thrive during retirement. Old pensions can be reacquired and set up for disbursement with some groundwork. Nobody should simply give up and assume their pension is lost.