President Bush signed the Pension Protection Act of 2006 (PPA) into law, August 2006. What does this mean? From a middle-class worker’s experience, pension plans are no longer safe. Many companies are terminating their pension plans. Whom was the PPA meant to protect? In addition, Social Security is also a big unknown, how long will it survive. Employers and financial experts are encouraging people to invest in alternative plans, such as a 401K.

I had my retirement plan thought out a long time ago and validated again in 2005, with a financial consultant. Maximum efforts, within my income and cost of living, placed in both the pension plan and the 401K. With those two and Social Security, a decent nest egg was being built.

The pension changes were sudden and not expected. Anyone brought up with the knowledge that his or her future retirement were secure, this was culture shock. I for one do not want to be flipping burgers or cleaning bathrooms when I retire. It is up to you to adjust your retirement planning portfolio.

Nevertheless, not all is bad. The PPA, several beneficial options were enhanced with 401K, IRA’s. Contribution limits increased, so you can now put more into your own retirement portfolio. In regards to IRA’s, the “Saver’s Credit, for low income taxpayers, was extended. Company stock trading rules were changed. Companies cannot force you to invest your retirement savings in company stocks.

I could try to go into detail, but I am no financial expert. I myself need to be more educated and more engaged in my own retirement portfolio. I think that was one of the intents of the PPA, to make individuals more responsible for themselves. Problem is the money has to come out of your own pocket. Many of us may not have that luxury of having additional cash, with cost of living and debts.

Let us focus on what you the individual needs to do. If you have outstanding debt, pay them off as fast as possible. In American society today, having debt is considered normal and in many cases encouraged. This type of thinking needs to be eliminated. Unless it is an emergency, if you cannot afford something, don’t buy it, save for it instead. You will need the additional money from the debt payments, to put them into some form of investment for the future. Your retirement portfolio should be at the top of your list. Seek out a reliable financial consultant and some financial and retirement planning seminars. That is what I am doing now.

Everyone needs to be more proactive in planning for his or her own future. The information is out there in schools, banks, financial consultants, even over the Internet. You just need to look, get educated and help yourself.