Personal Pensions
Create Personal Pensions That are Better Than Most Corporate Pensions
Imagine a world where you worked for 35-40 years, retired at age 65, got a gold watch and received 80% of your last paycheck as a lifetime pension. How sweet would that be?
Well, unless you are a government employee, those days are over. Today’s retirees are entering potentially their un-golden years because they have to create their own retirement paychecks. In 1972, most Fortune 500 employees retired with full company pensions that supported their lifestyle for as long as they lived. Fast forward to today, less than 2% of Fortune 500 employees receive full pensions.
When companies saw employees would set aside money for their own retirement in 401(k) savings they quickly got out of the pensions business. This created a seismic shift for retirees. No longer can we count on receiving our company paychecks for the rest of our lives. The risk of lifetime paychecks has shifted from the employers . . . to employees.
This is no subtle change. Most retirement experts believe 401(k)’s have not worked like the original promise. According to a Time Magazine cover story called, “Why It’s time to retire the 401(k),” they have not worked for the following reasons:
- Savings are voluntary and not mandatory
- Saving rates are lower than forecasts
- Returns are less than original projections
- Fees have eaten into returns
- Market corrections
This last point is perhaps having the most impact on everyone’s 401(k) accounts. In 2001 and 2008, the S&P went down 53% and 47% respectively. That meant most people’s retirement accounts went down drastically too. It takes years for the market to recover from these losses. This is painful enough when we are working, but not so pleasant in retirement when we have no company paychecks coming in.
Advanced Wealth Preservation helps successful people ensure their retirement income by creating personal lifetime pensions. Here are the major benefits of our advanced personal pension plans.
- Your personal pension is guaranteed for life via an income rider.
- Your personal pension offers a 100% spousal income benefit.
- Your personal pension offers a death benefit.
- You decide how big you want your personal pension to be.
- You decide when you want it.
- You can create multiple personal pensions to turn on at different times in retirement.
- You can create personal pension(s) from 401(k) and IRA money or non–retirement savings.
Personal pensions are a way to ensure you receive the paychecks you want in retirement no matter what the stock, bond and commodity markets do to your accounts. Imagine coming back from vacation in a year the stock market is down 50% but know it does not affect your personal paycheck sitting in your mailbox at home.
Your personal pension also gives you peace of mind late in life when perhaps you are alone and healthcare costs at their peak expense years. .
Click here to learn how you can create a personal pension that meets your income needs in retirement. What you do today will determine what your income, assets and lifestyle look like in retirement.
* Guarantees are backed by the financial strength and claims paying ability of the issuing insurance company. Certain limitations and expenses may apply. May not be suitable for all investors.
