How much should i have in my pension at 50

If somebody asks, “How much will my pension be?” then they’re probably a Baby Boomer or older, they’re a part of a union, or they work in the public sector (government, police, teachers, etc.).

Younger generations don’t ask that question because the pension is an endangered species. It’s been replaced by the 401(k).

Here’s why it’s still important to know about pensions: Even if you won’t get one, your parents might.

How much do i need to save for retirement if i have a pension

And you want to be aware of the basics so you can help them make decisions about their money.

What Is a Pension?

Back in the day, many companies contributed money to a retirement account for each of their employees.

Then, when the employees retired, they would get a fixed payout each month or one lump sum amount. How much you got depended on how long you worked for the company and the salary you had.

Pension calculator

Think of it like a retirement account that your employer funded instead of you.

Fast-forward to the present. Only 18% of people who work in the private sector (not the government) are covered by a pension

how much retirement should i save

how much pension can i save tax free