Pension plans

[dynomedasaur]

Hi all, 

 

I've recently heard of physician group type pension plans (similar to municipal pension plans etc.), just wondering if anyone here can provide more information on it? Things like, how much we need to contribute, how often we contribute, how to calculate year to retirement? 

Is it just a rumor or do such things exist? Prior to entering medical school, I was under the assumption that physicians were required to save for retirement on their own.

 

 

[rmorelan]

Hi all, 

 

I've recently heard of physician group type pension plans (similar to municipal pension plans etc.), just wondering if anyone here can provide more information on it? Things like, how much we need to contribute, how often we contribute, how to calculate year to retirement? 

 

Is it just a rumor or do such things exist? Prior to entering medical school, I was under the assumption that physicians were required to save for retirement on their own.

 

they do exist! Often they are exactly as they are describe - a group of doctors working at a practice get a pension plan - which on paper is not much different then any company starting a pension plan (there is no magic). The exactly amounts, time, and end value will depend on setup - it can vary based on what everyone wants. The advantage is tax deferral for retirement and since the RRSPs are limited for instance at 21K a year and pensions are not you can see why as a high earner you are looking for other tax deferral strategies for provide for retirement. In this case the doctors ARE still required to save for retirement, this is just the way they have decided to do it. There is no outside money really coming to the plan.

 

Retirement planning is big business and a big component of planning for doctors. Fortunately the basics are not hard at all and there is help out there to organize things. This is one area that knowledge truly is an effective form of power