Prior to 1980, retirement planning was simple, as two-thirds of the workforce had a pension. Granddad got a watch at his retirement party, collected a check while he was alive – and then Grandma often got a check for the rest of her life, as well.
If you could trade your IRA or 401(k) for a guaranteed pension, would you? When asked that question, the majority of adults surveyed said they would. That’s understandable, given the volatile economy and the fact that most men and women have watched their savings flounder (or worse, go south) over the last decade.
Fast-forward 30 years. Today only 6% of the workforce has pensions. Companies have decided they don’t want to be in the pension business anymore. Too costly. And too much responsibility.
So the government came up with 401(k) plans . . . and the responsibility of funding retirement shifted from the company to the individual.
Look what’s happened. Less than half of workers have managed to save $50,000 or more towards retirement. Those who have been contributing to retirement accounts are nervous. Over the last several years they’ve seen their savings evaporate and they’re worried about running out of money during their most vulnerable years.
Do you have any old or tired 401(k) accounts or IRA rollovers that have been ignored or are floundering? Often they can be converted into a personal pension plan or paycheck for life – a safe, guaranteed income stream that you can never outlive and no one can ever take away. Your personal pension plan can be used to:
- supplement Social Security or other retirement income
- accumulate assets for retirement
- receive guaranteed lifetime income
By providing guaranteed lifetime income, a personal pension plan can be the bedrock of a retirement plan. Your answer to the question: If everything else goes away, do you have a paycheck coming in that will cover all of your living expenses, and you never run out of money? You’ll sleep well at night knowing you have the security of guaranteed income that pays you for the rest of your life.
There are pros and cons to every financial strategy, so contact us for more details and information.
Guarantees are backed by the claims paying ability of the issuer. Certain limitations and expenses may apply. May not be suitable for all investors.