Create a pension backup plan: the benefits you've earned so far are safe, but future benefits could disappear. Are you prepared?(RETIREMENT INCOME)

Kiplinger's Retirement Planning Guide, September, 2007 by Franklin, Mary Beth

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AFTER 22 YEARS WITH FORD MOTOR CO., HANK Neumayer is thankful that he is covered by his company's pension plan and hopes his job--and his benefits--will last for another eight years, when he'll qualify for early retirement. But he's not counting on it. Although Ford has not indicated that it will freeze its pension, Neumayer is saving aggressively just in case his anticipated benefits don't materialize. That's probably wise because Ford has a pension shortfall of more than $12 billion and plans to cut more than 25,000 jobs over the next five years.

Scores of high-profile companies that once guaranteed generous checks to retirees are freezing their pensions, meaning they cap employees' future retirement benefits based on what...

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