News & Updates - 2005
FPSE News - December 13, 2005
Will your pension be indexed to the cost of
The answer is: it depends.
When you retire you will have a number of things to think about - and one of the most important will be income security. We are all members of a defined benefits pension plan and as such, we probably think that income security is not an issue. Unfortunately, that perception is wrong for two reasons. Firstly, many people in our pension plan retire with less than 20 years of service and as such, their pension income will likely be less than 40 percent of their pre-retirement income. Secondly, even if our initial pension is reasonably good, the purchasing power of that pension may decline because of inflation.
This article will discuss the potential effects of inflation on our pensions. It will also discuss options and questions that you may want to raise with both Pension Trustees and your executive. More...