It is important for employees to plan their retirement ahead of time. There are different methods to plan for your retirement and make sure you can live a comfortable life after finishing your career. Besides pension, government employees have 401(k) plans allowing employees to invest in them. People who do not have access to 401(k) can create retirement accounts (IRA) to save money for their future. The federal government also has several laws in place to make sure the future of employees is protected. The Employee Retirement Income Security Act (ERISA) examines how retirement funds are being provided to senior citizens.

The 401(k) retirement plan is a way to invest into your own future. Employees save a part of their own salary by depositing into an account. There are different kinds of plans available to employees. Different fees have to be paid to keep the plan alive. These include; plan administration fee, investment fee and individual service fee. Selecting an appropriate fee structure has an effect on the profitability of your account.

Employees with a 401(k) benefit plan may receive a lump sum of money if they are let go from their jobs. In case they have a defined benefit plan, their benefits will kick in once they reach retirement age.

Understanding your rights within the retirement plan is complicated. You might want to consider hiring an experienced attorney to guide you through the process and set up an account for you. The attorney will explain all your rights and make sure your retirement plan is safe and sound.