To enjoy your retirement- Retiring without any pensions plan can be a very risky decision. While you might love what you do and can’t imagine sitting around watching your grandkids and playing golf every day, this will change when you’re old and retired. It is therefore important to have a pensions plan to enable you cover your living expenses and maybe even guarantee a luxury lifestyle after retirement. A pensions plan makes this possible.
Secure a solid Rainy day fund- There are many ways to invest money, and some of them are riskier, more lucrative and more immediate than others. A pensions plan is your nest egg. While other forms of investing and saving can be very complementary, none of them reward you for waiting like a pensions plan. With a pensions plan, there is a solid fund accessible to you in case of any emergency.
To build wealth- With a pensions plan, the sooner you begin saving, the more time your money has to grow. Each year’s gains can generate their own gains the next year. A pensions plan is a powerful wealth-building phenomenon.
Lower risk as opposed to investing in the corporate world- Good pension plans are diversified, which means the money is invested in a carefully-selected mixture of assets, to help manage risk.