Pension system in the United States

Posted: September 10th, 2013 | Author: | Money

While discussing the nuances of the situation in our country, we often hear the opinion comparing the system  to the ones abroad. At the same time, one of the most common causes of complaints in our country is salary pension scheme. How it looks abroad for example the U.S.?

epSos.de / photo on flickr

epSos.de / photo on flickr

Just as in our pension system,  there is also mandatory. However, apart from the vast majority of employers cover, employees get additional pension insurance scheme, which is called a pension plan there. It appears to be a significant approach to the employee by person who employs it. In addition, many people choose to supplement it different ways, sometimes even several different pension funds, which are similar to our solutions IRA. The big difference is that our IKE can be only one.

The retirement age in the U.S. is similar to ours 67 years with the exception if reaching 62 years you can go for earlier, lower retirement. Which, however, even after the reduction is generally higher than wages for most people in our country (more than $ 1300 in 1999). All kinds of individual forms of saving for retirement are tax-free, as in our country. But only when using them when after retirement. Earlier use, as well as in our country, is taxed for capital gains.

The main difference is that we can choose the moment of  tax benefit. There are two basic types of private pension insurance. The first amount of contributions are not tax deductible immediately, and any fees paid when come, are paid premiums. In the second case, we cannot deduct anything from income tax, but the payment of premiums would not involve any additional loads. So is the U.S. system actually better? Certainly the tax and insurance is much more powerful, yet also complex. Certainly, also there come into play larger sums of money in terms of U.S. dollars, but there are associated with higher wages, etc. Better or worse? It’s really hard to evaluate because of the possibilities and scenarios may happen. Surely the basic, mandatory pension insurance does not pay the amounts sufficient for survival.

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