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Jennie and her uncle Jack both work for the same large company. Her uncle Jack retired last year and receives a monthly pension that was determined based on his age and years of service. Jennie was looking at her employee manual recently and noticed that her retirement plan is based on regular payments by the company into her pension account and does not promise a fixed sum at retirement like her uncle is getting. In the case of Uncle Jack, as he is a retired individual, the benefits can be obtained from Medicaid along with the Managed Care Plan as it will result in lower costs, due to his fixed income. In Jennie’s case, the benefits can be obtained by the pan, which has the option of cost sharing with a higher deductible as she is still working, young, and she is in good health. She will be afforded the option during open enrollments to change this every year.
QUESTION: Who do you think receives better retirement benefits Jennie or Uncle Jack and why?
It is likely you have thought of an idea(s) for entrepreneurial new-economy ventures. If not, think of one now
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