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39 Defned contribution plans Under a DC plan, contributions are made by the employee and, depending on the level of generosity, the employer as well. Generally, upon retirement, one can take a tax-free or reduced tax lump sum from the fund and use the rest to buy an annuity, which will provide regular payments for the rest of your life. Whilst this sounds adequate in theory, in practice, the only guarantee with a DC plan is the amount going into the scheme; what comes out is most definitely subject to the performance of the investments bought. This highlights the obvious disadvantage that if the stock market sinks, the value of your fund will depreciate along with it. Personal pension plans Designed to pay out when you finish work, a personal pension (when paired with a company pension plan) is one way to provide extra income during your retirement. There are many types of personal pension plans available out there, but do seek advice on which may be most suitable for you. Your choice can depend entirely on a combination of how involved you want to be, your attitude towards risk and the amount you can afford to save. Whatever you decide, you will make regular contributions into the scheme until you choose to retire, at which point you will receive a lump sum, annuities or a combination of both. Like DC plans, the money will be invested on your behalf, with the anticipation that your fund will grow in line with the performance of the investments. However, this must of course be considered alongside any risks that may be acquired as well. Remember, the earlier you start making contributions into a plan, the longer it will have time to grow. Keep that in mind if you want to retire on a comfortable income. National state pension To qualify for National State Pension, you need to have made contributions for a set number of years and/or had them paid for you, after which point the government will issue your payments. It’s important to note that the age at which one qualifies to receive a state pension varies between nations; this age will likely increase as time goes on and as each country tries to cope with their aging societies. If you are unsure of what you are likely to get, you can request a forecast that will tell you the amount of basic pension you have already earned, and what you can expect at retirement. Although — internationally — pensions are in a bit of a crisis and employees face a huge drop in income when they retire, you are not helpless. Knowing about your options will help you to plan and save for your future. Next time, we will take a closer look at company pensions. The earlier you start making contributions into a plan, the longer it will have time to grow. Keep that in mind if you want to retire on a comfortable income. Give your children the smiles they deserve Pediatric dentistry & Orthodontics for all ages ExPEriEncE rEPutatiOn rEsults 71-9, Cheongdam-dong, Gangnam-gu, Seoul 서울특별시 강남구 청담동 71-9 청담 IVY 교정전문클리닉 www.ivysmile.kr 02.518.2722 fnd us at FB “ivy dentalclinic” ChunGdam IVY ORTHODOntics ChunGdam IVY ORTHODOntics VIPS HONDA Hotel Riviera COEX Sinsa Stn. Gangnam-gu Offce Line7 Cheongdam Stn. EXIT 12 IVY Dental Clinic • U.S. Certifed Orthodontic Specialist • Member of American Dental Association • TRICARE Dental Program Preferred Provider • Assistance with all dental insurance paperwork > Dr.Jay H Kim D.M.D., M.S. • US-Trained and licensed dentist • Member of American Dental Association > Dr. David John Choie D.M.D