on Feb 8th, 2006Retirement Smackdown - Pension Scissorhands on the Loose
A good football coach knows when he’s faced with a novel defense, he may have to improvise a counter offense. A shrewd quarterback will call an audible as he steps up to the line and surveys the weakness in the defense. Now that corporate America has changed the rules regarding pensions and health benefits, it’s time for you to throw your bowl of popcorn at the TV and get in the trenches of modern retirement planning. It won’t be pretty, and there’s little you can do about the fact that corporations can make up the rules as they go to their advantage, but desperate times call for innovative strategies. Our suggestion: retire to a country where your buck goes further and you don’t have to pay taxes.
As companies cut more retirement benefits, employees increasingly will have to look after themselves. Here’s what to consider:
• Fund your company sponsored 401(k).
• Set aside additional savings in an IRA.
• Open an HSA, if available, to cover medical expenses.
• Consider working more years before you retire.
Pension Pain: How to Protect Your Retirement As Employers Cut Retiree Benefits, Workers Must Focus on Saving In IRAs, 401(k)s, Even HSAs
By JEFF D. OPDYKE
Staff Reporter of THE WALL STREET JOURNAL
February 8, 2006; Page D1