ABA Family Legal Guide

The Rights of Older Americans

Pensions

Maria is in her fifties, and works for an employer that has a defined contribution pension plan. She is thinking about retiring, but isn't sure when she'll be able to start collecting her pension, or even how much she'll get.

When you retire, your financial security will probably depend on pension income, Social Security benefits, and personal savings. The availability of income from a private pension plan can make the critical difference between a comfortable retirement and one plagued by financial worries. This section discusses three basic kinds of employer-sponsored pension plans: traditional defined contribution and defined benefit pension plans; a simplified employee pension plan; and Section 401(k) plans. It is important to understand your legal rights regarding private pension plans, so that you can make sure the funds are prudently invested and that you receive all the benefits to which you are entitled.

Subsections

1. Traditional Pension Plans
2. 401(k) Plans and Simplified Employee Pension Plans