Everyone knows someone with a pension. Typically, a police officer, firefighter, or teacher. Having a pension means they will get paid a monthly amount in retirement… guaranteed.
Not many people have pensions anymore. People that do are excited about them. Everyone else has “pension envy”.
So, what makes a pension so great anyway?
It comes down to “guarantees”. We all like guarantees. And retirement income is no different.
A pension answers the most difficult retirement planning questions:
- “How much income can I withdraw in retirement?” A pension tells you exactly how much you’ll receive and at what age.
- “Will my savings last my entire life?” A pension guarantees you’ll get that monthly amount for the rest of your life.
Right now, a pension is sounding pretty good, right? What if your company 401k could offer this same guarantee… at no extra cost?
- Would that create confidence for you and your employees knowing your income will last?
- Would it help retain key employees?
- Would it help recruit new employees?
I see so many employees stressing about retirement. My goal is to help as many as I can.
Interested in learning more about this new type of pension-like plan?
All investments involve risk, including possible loss of principal. The target date is the approximate date when investors plan to start withdrawing their money. The principal value of a target fund is not guaranteed at any time, including at the target date.
Riders are additional guarantee options that are available to an annuity or life insurance contract holder. While some riders are part of an existing contract, many others may carry additional fees, charges and restrictions, and the policy holder should review their contract carefully before purchasing. Guarantees are based on the claims paying ability of the issuing insurance company.
This information was developed as a general guide to educate plan sponsors, but is not intended as authoritative guidance or tax or legal advice. Each plan has unique requirements, and you should consult your attorney or tax advisor for guidance on your specific situation. In no way does advisor assure that, by using the information provided, plan sponsor will be in compliance with ERISA regulations.