You can select from a range of pension plans to lead a worry free post retirement life. You can also semi-retire by reducing the working hours. Most people retire while they are eligible for pension benefits. People may retire due to illness too. Various countries have different retirement age. Normal retirement age is 66 while 62 is the early retirement age in the US. Normally people retire between age 55 and 70.
There is a range of benefits after you reach the state pension age. There are pension options which will give you lower monthly benefits but extra security for your spouse after your death. Other options will give you larger monthly payments if you will give a lump sum for your spouse’s protection.
There are four factors on which retirement benefits are calculated. It is based on your age, 3 highest consecutive years’ salaries, years of creditable service, group classification. The retirement allowance options include option A which gives you full retirement allowance till your death. In option B, it is a reduced retirement allowance. Your beneficiary will receive lump sum payments of your annuity balance at the time of your death. The option C is also a reduced retirement allowance. After your death, your beneficiary will receive a monthly retirement allowance which is calculated on their age for their remaining life.
The state pension age options include a single pension when you retire. It is a monthly pension payment which you can get after selecting a single annuitant pension. You can receive a monthly pension payment if you choose a joint survivorship pension through the joint pension at retirement plan.
Pensions can be employment-based pensions, social or state pensions and disability pensions. After leaving your job on reaching retirement age, you can get an income. This is funded through a fund which is made of contributions from employer and employee. These are also known as deferred compensation. A government creates a fund in social and state pensions. The income is paid from this fund after retirement. To get benefits later, this type of pension require payments during ones working life. One example of this benefit is Social Security.