If your workplace offers a pension plan, it will likely be one of these three plans:
1. Defined benefit pension plan
2. Defined contribution pension plan
3. Group Registered Retirement Savings Plan (Group RRSP)
Small businesses often offer a Group RRSP.
Before you join a pension plan, find out how your company plan works and how much income you will get from it when you retire. Also, there are certain things to watch out for with each different plan. Make sure you understand any rules that will affect your income when you retire.
Remember: Each workplace savings plan has its own rules
These rules can really affect what you will get when you retire. Keep this in mind, especially if you are considering pensions from different job offers. The value of a better pension plan can really add up over the years.
Content in this section is provided in partnership with the Investor Education Fund, a non-profit organization promoting financial literacy to Canadians. To find out more go to GetSmarterAboutMoney.ca.