Augusta
VIP Contributor
It is always great and really interesting to know that you work with a company or organization that is pensionable. But sometimes it would have better to be handed all your money to make the most plan with it than being stack away by your employer. So as good as pension sounds it also has its bad sides. The below points are the downside of pension
- It is sometimes difficult to access to your pension until it gets to the retirement period. So even if you are a very tight corner financially, you wouldn’t have access to the money except at the right time
- Not all pensions are transferable; this simply means if you change jobs you can’t transfer the pension funds from your old workplace to the new one. so if you are not vested in a former place of work, moving your pension fund isn’t just possible
- If a company or employer goes bankrupt then this will negatively affect the pension funds. The business might nt be able to pay the full pension that you had anticipated. Though you might get something but it will be lower than your expectations
- You do not have a say in your pension plan. So you just make do with the kind of pension plans that the company is adopting. So at the end of the day everything is decided by the employers and not you the employee.
