At the same time, in many instances these government pensions don't count when a person goes to apply for social security benefits. This means they can easily reap those additional benefits. Many people complain about this clause though because their own pension plan doesn't allow for them to have this exemption. They also argue that a pension plan should be in place so people don't have to rely upon social security benefits when they retire.
The government will be the first to tell you that there are plenty of issues still to be resolved with pension plans though. The first is to ensure that the majority of people in the work force have access to them. Some businesses don't offer them so the individuals don't take the initiative to set up their own account for retirement with an outside source. They tend to spend what they earn and to have very little money even in a savings account.
The goal is to get more businesses to offer pension plans. There are employers out there that make it mandatory for employees to join them. They are willing to match the contributions dollar for dollar though up to a specific amount per year. This is a great way for people to build up the money in their pension easier. It may take a set amount of years on the job before they are fully vested though.
The pension plans that are out there with the help of the government though give such employers a break. They feel it reduces the burden of society when individuals are able to take care of their own medical and living expenses upon retirement. They want to make sure the various pension plans out there allow this to be the case.
