When you’re in the workforce, it’s tempting to focus on your job and not think about retirement. But the truth is, retirement is a lot more important than you think it is.

Retirement can be a scary word for many people because it means leaving the workforce and no longer earning an income. However, you don’t have to retire completely from work when you reach retirement age. You can choose to continue working part-time or take on a different type of job that may be less physically demanding.

If you want to retire early without having saved enough money for retirement, then you should consider getting a superannuation for casual employees or pension plan at work. When you’re getting ready to retire, it’s important to have a pension plan in place. Here are 5 benefits of having a pension plan at work:

  • It offers financial security

A pension plan is designed to pay you a certain amount of money each month after you retire from your job. It helps ensure that you don’t outlive your savings and that you receive some sort of income when you can no longer work.

It allows you to contribute tax-deferred money into your retirement fund. You can contribute up to $19,000 per year ($24,000 if over age 50) into the plan tax-free and take out those funds at retirement tax-free — up to the limit set by law at that time. This saves you money because it means you won’t have to pay taxes on the money now or later when it comes time to withdraw it from your account.

It may be offered through an employer as part of their benefits package (this is especially true if they offer health insurance coverage). You may also be eligible for other benefits through your employer such as disability insurance coverage or life insurance coverage through their group insurance policy.

  • Tax benefits

Tax-deferred contributions allow you to put off paying taxes until a later date. You shouldn’t contribute too much though, since you’ll have to pay taxes and other penalties on withdrawn funds in retirement.

  • Investment options

Pensions allow you to diversify your portfolio over time by investing in mutual funds that include stocks, bonds and cash. When it comes time to withdraw your money, you can choose from several types of accounts including 401(k)s and IRAs.

  • Guaranteed Pension Benefits

Unlike 401(k)s and other types of retirement plans, pensions guarantee a fixed monthly payment until death. This is an important feature because it ensures that you will receive a steady income while ensuring the safety of the funds over time.

  • Automatic Savings Plan

Pensions automatically deduct money from each paycheck and invest it into the pension fund, which means less work for you! All employees are eligible to enroll in the plan as long as they meet age requirements for eligibility and meet other eligibility criteria set by their employer’s pension plan administrator.

You contribute on a pre-tax basis, which means you’re not paying taxes on that amount of income yet. So, if you contribute $5,500 per year, which is the maximum contribution limit for 401(k) plans in 2019, that’s $2,650 that wouldn’t be taxed until you withdraw the money in retirement. This reduces your taxable income for the year by that amount and could also help lower your tax bill come April 15.

You have an employer match (if available). If your company offers a matching contribution on top of what you put in each year, this is essentially free money in your pocket. It’s like getting paid twice: once when they take out their portion and then again when they match yours!