Whether you are planning to retire in the next few years or have already retired, there are some things you should know about retirement and pension. If you are not sure what your options are, the Office of Personnel Management offers retirement services and can answer your questions.

Pension plans can be defined-benefit plans or defined-contribution plans. With a defined-benefit plan, the amount of money that you receive in retirement will be fixed and guaranteed. Generally, the amount will be based on your salary and the number of years you have worked for the company. However, it is possible for an employee to leave their job before the pension plan vests. If you leave your job before your pension plan vests, you may not receive the full amount you had promised when you retired.

Defined-benefit plans are available to 12% of workers. These plans require the employer to make a contribution to the pension plan. However, this may not be enough to cover your expenses in retirement. Some employers will require that you work for a certain number of years before you can access your workplace retirement plan. Other employers will allow you to immediately vest.

Defined-contribution plans operate much like defined-benefit plans, but are subject to market ups and downs. These plans also allow you to choose your investments. They are also a tax-advantaged way to save for retirement.

Pension plans are available to federal and state employees, but they are less common among private sector employees. The Pension Benefit Guaranty Corporation (PBGC) ensures that you receive your benefits in a timely manner. However, it is important to understand that the PBGC only guarantees benefits up to a certain annual limit. If you do not receive your benefits by that time, you may be entitled to compensation.

Pension plans are also offered to employees with spouses. If you are married, you may be eligible for a joint-and-survivor payout, which pays out a certain percentage of the pension to your spouse if you die before retiring. This payout is less than a single-life annuity. You may also qualify for a death benefit if you are a federal employee.

If you are interested in learning more about your options, check with the Employee Benefits Security Administration (EBSA). You can also visit the OPM website for more information. If you have questions, the free legal assistance is available. You can also visit Retirement Online, which is a self-service tool for reviewing your retirement benefits. You can also update your contact information, change your beneficiaries, and estimate the amount of your pension.

It is also important to understand the impact of retirement on your other sources of income. For example, if you have a mortgage or childcare, you will no longer have these responsibilities in retirement. However, if you have other expenses, such as medical insurance, travel expenses, or hobbies, you will need to factor those into your overall retirement plan. You also need to consider how much you will need to live on, and how much of your income you will need to set aside for day-to-day expenses. You may also want to consider a separate emergency account. This account should contain at least three to six months of your salary.