CREATE A RETIREMENT INCOME YOU CAN COUNT ON FOR LIFE – WITHOUT AN EMPLOYER PENSION PLAN Learn how to establish a personal pension plan that generates a steady and reliable income for life, no matter how long you live.
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FOREWORD Thank you for your time and interest. This booklet was created as an educational guide to bring you greater clarity and understanding of the financial decisions you make. If you need more information on a subject discussed, we welcome your email and will attempt to get you the answers you need. Please remember, everyone’s financial situation is different. So any product or solution you choose must match your specific financial situation. We strongly recommend consulting a highly rated professional about every financial decision you make. Because, just like all products are not created equal, neither are all financial professionals. And the difference in knowledge and advice can be substantial from one advisor to another. Working with a highly knowledgeable, independent, well-rated professional can make all the difference in the results you achieve. If you are ready to explore your retirement options and want help cutting through the clutter and jargon, visit www.CertifiedSafeMoney.com for unbiased information and connect with professionals who can answer all of your important questions. If you have feedback related to this booklet or concerns about your retirement income and financial security, please email us at [email protected]. We’re happy to help. CSM202101PENSIONPLAN 3 [email protected] www.certifiedsafemoney.com
HOW A PERSONAL PENSION PLAN CAN HELP YOU CREATE A WORRY-FREE RETIREMENT When you imagine your retirement, what do you see? If you’re like most people, the scene might include relaxing on a warm, sunny beach, spending endless days on the golf course, or enjoying quality time with your grandchildren and other loved ones. But while you may be eagerly awaiting retirement, many people feel like they haven’t saved enough to attain and maintain their intended lifestyle. Doing so can be more difficult if you don’t have a guaranteed pension income from your employer or if you’ve been subject to losses in your portfolio due to the volatile stock market. There are ways you can relax, knowing that you have a reliable retirement income you can count on regardless of how long you may need it – through a personal pension plan. WHY THE “TRADITIONAL” METHODS OF PREPARING FOR RETIREMENT DON’T WORK TODAY When your parents and grandparents were retiring, there were typically three primary sources of income they could count on: - Company-sponsored pension plan - Social Security - Interest and dividends from personal savings and investments These were often referred to as the “threelegged stool.” The ongoing, reliable income stream from a company pension and Social Security often made it possible for retirees to keep their savings and investments untouched. Plus, because life expectancy was shorter back then, retirees could usually feel comfortable financially, knowing that they (and often their surviving spouse) would have more than enough income for the rest of their lives. Learning more about these retirement income methods can explain why the “traditional” sources of income in retirement may no longer be sufficient for today’s and tomorrow’s retirees. CSM202101PENSIONPLAN 4 [email protected] www.certifiedsafemoney.com
COMPANY-SPONSORED PENSION PLAN Until a few decades ago, many employers offered defined benefit pensions to their employees. With this type of plan, a retiree could count on a set regular income, often for the rest of their life. Plus, in many cases, when the retiree died, their surviving spouse could continue to receive some or even all the regular income. These defined benefit plans required little responsibility from the employee in terms of generating future income. Instead, the employer took on the bulk of the investment risk, such as a downwardmoving stock market. Given the expense of keeping defined benefit pensions in place, many companies – both large and small – have done away with these plans and have replaced them with defined contribution plans like the popular 401k. Although traditional 401k plan participants can obtain some tax-related perks, such as making pre-tax contributions and generating tax-deferred growth of their funds, the responsibility of having enough money for retirement is now firmly in the hands of the individual employee, not the employer. Plus, while some people may be good savers, few (including many financial advisors) are adept at converting years’ worth of savings into a reliable, ongoing income stream for retirement. For this reason, many of today’s employees and pre-retirees feel financially unprepared for their future. Furthermore, because people live longer lives, retirees must stretch retirement income to last several decades in some cases, which is a difficult task to accomplish with today’s volatile stock market and historically lowinterest rates. Even with these hurdles, there are strategies for creating and implementing a “personal pension plan” that can provide you with an ongoing income stream in any type of market or economic environment. Depending on the financial vehicle you choose, you could generate tax-advantaged growth even if you have made the maximum annual contribution(s) on an employersponsored retirement plan or IRA (Individual Retirement Account). CSM202101PENSIONPLAN 5 [email protected] www.certifiedsafemoney.com
SOCIAL SECURITY Another “leg” of retirement income for yesterday’s retirees was Social Security. This program, which was started in 1935 by President Roosevelt, was never meant to replace 100% of retirees’ working wages. However, for those who have average earnings, it can typically replace about 40%. Recently, though, concerns have been raised about the financial stability of this vital retirement income program. One major hurdle is the rapidly growing number of benefit recipients and the decreasing number of workers paying into Social Security. In the future, it is likely there will be more retirees taking benefits out of the Social Security program than workers are paying into it. One of the strategies the Social Security Administration implemented in the 1980s was raising the full retirement age (FRA), the age at which an eligible individual can receive their maximum Social Security retirement income benefit. For many years, 65 was the full retirement age. However, today, it can be as high as age 67, depending on the year you were born. Year Workers (in thousands) Benefit Recipients (in thousands) Ratio of Workers versus Recipients 1940 35,390 222 159.4 1950 48,280 2,930 16.5 1960 72,530 14,262 5.1 1970 93,090 25,186 3.7 1980 113,656 35,118 3.2 1990 133,672 39,470 3.4 2000 155,295 45,166 3.4 2010 156,725 53,398 2.9 2013 163,221 57,471 2.8 Year of Birth Minimum Retirement Age for Full Benefits 1937 or Before 65 1938 65 + 2 months 1939 65 + 4 months Source: Social Security Administration (https://ssa.gov/history/ratios.html) Workers Paying into Social Security vs. Benefit Recipients Social Security Full Retirement Age CSM202101PENSIONPLAN 6 [email protected] www.certifiedsafemoney.com
Eligible Social Security recipients can start receiving their retirement income as early as age 62. However, if you choose to do so, the amount of your benefit will be reduced – and not just until you reach your full retirement age. Doing so will permanently reduce your Social Security benefits, so this may not be the best retirement advice for some retirees. But suppose you wait to file your Social Security retirement benefits. In that case, you can essentially give yourself an 8% per year “raise” for each year that you wait between your full retirement age and age 70 (you can wait even longer to file for your income benefits, but the 8% increase will no longer accrue). For example, if 66 is your full retirement age, and the amount of your benefit at that time is $2,000 per month, you could essentially end up with a 32% increase in the dollar amount of your benefit if you wait to file for benefits at age 70. So, if you do not need or want to start taking Social Security as soon as you are eligible for full benefits, it can pay to wait. Doing so can permanently increase the amount of income you will receive from Social Security going forward. 1940 65 + 6 months 1941 65 + 8 months 1942 65 + 10 months 1943 to 1954 66 1955 66 + 2 months 1956 66 + 4 months 1957 66 + 6 months 1958 66 + 8 months 1959 66 + 10 months 1960 or Later 67 If you take benefits at age: Monthly benefit amount: 66 $2,000 67 $2,160 68 $2,320 69 $2,480 70 $2,640 Source: Social Security Administration (This example uses simple increases of 8% per year, based on an original benefit amount of $2,000, but does not factor in any cost-of-living adjustment, or COLA, that the benefit recipient may be eligible for.) CSM202101PENSIONPLAN 7 [email protected] www.certifiedsafemoney.com
PERSONAL SAVINGS AND INVESTMENTS Many years ago, the income generated from a retiree’s personal savings and investments was often considered “extra.” Retirees did not need these funds for covering essential expenses like food, housing, and utilities. Instead, they often used these dollars for non-essential items such as travel, entertainment, and fun. But today, given the near disappearance of defined benefit pension plans and an uncertain future for Social Security, more retirees are being forced to rely on what they have saved to sustain them throughout what could be a 20-year or more retirement. Some retirement planning services use a portfolio “drawdown” strategy for accessing money that you need for your retirement living expenses while at the same time allowing the remaining funds in your portfolio to continue growing. For many years, withdrawing 4% was considered a “safe” withdrawal rate by some of these advisors. But given today’s uncertain financial markets, this particular retirement income advice could prove to be a mistake. Years ago, when the “4 Percent Rule” theory was created, yields from a portfolio consisting of 50% stocks and 50% bonds typically exceeded 4% – allowing retirees to receive a guaranteed retirement income while at the same time continuing to grow their assets in the portfolio. Yet, as most investors and financial advisors are aware, “Past returns do not guarantee future results.” Today, many consider it quite risky for retirees to base their income on this outdated “4 Percent Rule.” More recent research that factors in longer life expectancy, inflation, and more current market conditions, has determined that a portfolio divided 50/50 between stocks and bonds will yield closer to 2.8%. Following the “4 Percent Rule” advice could essentially put many retirees at risk of outliving their savings. According to new studies, even a portfolio containing 60% bonds and 40% equities, recent studies show a 50+ percent chance that a retiree would still run out of savings within approximately 20 years, especially if a low-interest-rate environment persists. CSM202101PENSIONPLAN 8 [email protected] www.certifiedsafemoney.com
Given these findings, along with continued stock market volatility and historically lowinterest rates, this “traditional” withdrawal plan is no longer considered to be a practical strategy for many retirees. Imagine if you had just started using the 4% withdrawal strategy during the 2008 recession or the more recent 2020 COVID-19 pandemic (and corresponding stock market turbulence), possibly causing the funds in the portfolio not to have performed anywhere close to how you had hoped they would. It is also possible that it would have quickly depleted your portfolio… Then what? Failure Rates for 4% Inflation-Adjusted Withdrawals over 30 Years with a 50/50 Asset Allocation For Different Asset Return Assumptions 6% 33% 57% Historical Averages 60% 50% 40% 30% 20% 10% 0% Real Bond Returns = 0% Real Bond Returns = -1.4% Source: "The 4% Rule is Not Safe in a Low-Yield World" by Michael Finke, Ph.D., CFP; Wade D. Pfau, Ph.D., CFA; David M. Blanchett, CFA, CFP. 2013. CSM202101PENSIONPLAN 9 [email protected] www.certifiedsafemoney.com
ARE YOU RUNNING OUT OF TIME TO SAVE FOR YOUR RETIREMENT? As life goes on, many people feel that they have plenty of time to start saving for retirement – until they suddenly don’t! For instance, in their twenties, many people are still grappling with paying down their student loan debt, starting a family, buying a home, and settling into their careers. Even in their thirties, it can be challenging to set aside money “for the future,” especially when raising children and saving for their children’s future education. Many people have college-age children who need at least some financial help from their parent(s) in their forties. These folks will often tell themselves that as soon as these other financial obligations have passed, it will be an excellent time to start working with a retirement income planning professional. By the time people reach their fifties, they may have one or more children who have moved back into their home (due to a challenging job market or other financial reasons). By the time people reach their sixties, they begin to feel like it is too late to start saving for retirement. Or, they may think that the funds they have stashed away in their 401(k) or other similar employer-sponsored plan are enough—only to be hit with significant losses during recessionary times or a global pandemic. Unfortunately, many people are then back to square one. IT IS POSSIBLE TO GENERATE RELIABLE LIFETIME RETIREMENT INCOME Even without saving a significant amount of money, there are ways that you can still generate ongoing income in retirement regardless of what happens in the stock market, with interest rates, or with the overall economy. Through a “personal pension plan,” you can be paid a set amount of income for a specific period, such as ten or twenty years, or even the rest of your lifetime. Plus, in many cases, you can even add a second income recipient, such as a spouse or partner, to ensure that they will also receive incoming cash flow as long as they need it. One of the most important benefits of owning a “personal pension plan” is that there are no “what ifs.”It’s not based on “maybes” or hypothetical illustrations. Instead, you will know the dollar amount of income you can count on. CSM202101PENSIONPLAN 10 [email protected] www.certifiedsafemoney.com
UNDERSTANDING THE “PERSONAL PENSION PLAN” There are many different retirement income generators. These can include stock dividends, bond income, and rental property. Unfortunately, though, all these sources are dependent upon something or someone else. For example, suppose you are receiving dividends from stock. In that case, it is possible that the company could go out of business or that the stock market could fall and, in turn, reduce or even eliminate the dividend payout. Likewise, bond income may be reliable, but there is still no guarantee that it will be sustainable for the long-term horizon. As an example, in the mid-1980s, some bonds were paying out double-digit interest. But fast forward to today when even the longerterm bonds are barely paying 2%. With that in mind, relying on bonds for a retirement that could potentially last for two or three decades is a risky proposition, especially if you need the dollar amount of your income to go up over time. Rental real estate can also keep you on edge when it comes to receiving a reliable source of income during retirement. One reason for this is because your tenant(s) could simply stop paying their rent. In fact, during the 2020 COVID-19 pandemic, many people lost their jobs and could not pay their housing expenses. This left property owners and landlords at the mercy of their own mortgage companies. Plus, not all tenants treat the property as if it were their own. So, you could find that when a tenant moves out, it could take a sizable chunk of money to prepare the property for the next renter. Given these reasons, plus the carrying costs of an empty sitting property, it isn’t a good way to have a relaxing and worry-free retirement. This is where the personal pension plan can come in. Pensions have been in use for thousands of years. The idea of paying out a stream of income to an individual (or families) dates back to the Roman empire. The Latin word “annua” stands for annual stipends whereby individuals contribute a lump sum. In return, they would receive regular payments each year for a set amount of time or even for the rest of their life. Today in the United States, the Internal Revenue Code defines an annuity as a contract that requires regular payments for more than one full year to the person entitled to receive the payments (annuitant). Insurance companies back these financial vehicles, so in turn, they can offer various guarantees. In many ways, annuities are considered “insurance for living too long” because they can continue to make income payments no matter how long you may need them for the rest of your lifetime. CSM202101PENSIONPLAN 11 [email protected] www.certifiedsafemoney.com
Today, individuals can purchase annuities to supplement retirement income or help with an income “gap” between the time they leave their employer and the time they can begin taking other retirement income benefits like Social Security. Given the disappearance of employersponsored defined benefit pension plans, many people turn to annuities to create their own “personal pension” plans with lifetime income they can count on. In addition to that, unlike other tax-advantaged accounts such as an employer-sponsored retirement plan or an Individual Retirement Account (IRA), there are no annual maximum contribution limits with annuities. Therefore, even if you have already put in the maximum contribution for the year with these other savings plans, you can continue to fund an annuity and add—in some cases significantly—to your tax-advantaged savings. Annuities that do not begin paying income right away (referred to as deferred annuities) can offer other benefits. For instance, the funds inside the annuity’s account can grow and compound tax-deferred. Therefore, no taxes are due on the gain until the time of withdrawal, which could be many years in the future. Compared to taxable investments, tax-deferred growth can provide more development on the same amount of investment, with all other factors being equal. Taxable versus Tax-Deferred Growth $300K $275K $250K $225K $200K $175K $150K $125K $100K 0 5 10 15 Years Tax Deferred Fully Taxable 20 25 CSM202101PENSIONPLAN 12 [email protected] www.certifiedsafemoney.com
CUSTOMIZING YOUR PERSONAL PENSION PLAN Everyone’s financial needs and goals are different – both before and after retirement. That’s why it is essential to have a good understanding of what you want to achieve and which type of annuity can most closely fit these needs. While all annuities have some similar features, the reality is that many different types of annuities are available in the marketplace, making buying an annuity rather challenging to navigate. So, it is crucial to attain a good understanding of each annuity type so that you can best match up which one—if any—may fit your specific objectives the best. Immediate versus Deferred Annuity One way to differentiate annuities has to do with when they start making income payments. For instance, immediate annuities will typically begin making income payments within one to twelve months after buying it. Immediate annuities are often bought by retirees looking to convert their savings, such as money in a 401(k) or similar retirement account, into a regular income stream in retirement. Conversely, a deferred annuity has two specific phases. These include the accumulation phase and the “decumulation,” or income payout phase. During the first phase of a deferred annuity, you may make one or more contributions. These funds can continue to grow tax-deferred over time. Later, if you choose to have the annuity pay you an income stream, you can typically decide if you want the income to last for a set period or for life. Generally, annuities will offer a variety of income payout options, such as the following: FIND SAFE MONEY EXPERTS CSM202101PENSIONPLAN 13 [email protected] www.certifiedsafemoney.com
- Life Only – The only option will continue to pay income for the remainder of the annuitant’s (i.e., the person on whose life the income is based) life. The life only option can alleviate the concern about running out of income when it is still needed. This, in turn, can lead to a worryfree retirement. - Period Certain – With this payout, the annuity will pay income for a predetermined period, such as ten or twenty years. After the period has elapsed, the income from the annuity will stop. If the annuitant dies before the period is up, it will make the remaining payments to one or more beneficiaries. - Life with Period Certain – This income payout alternative is frequently considered a “combination” of the period certain and the life only income options. Here, for instance, income will continue for the rest of the annuitant’s lifetime. However, if they die before a set period—such as ten or twenty years—payments will continue to be made to a named beneficiary until the pre-selected time period has elapsed. - Joint and Survivor – With this payout option, two individuals, such as a husband and wife, can count on income to continue until the second individual’s death. In some cases, the dollar amount will be reduced at the first person’s death, and in other instances, the amount will remain the same. Alternatively, you could withdraw the entire balance of the account. This, however, is not typically recommended, mainly because you could owe tax on all the gain in the year of the withdrawal. In addition to being immediate or deferred, annuities can also be categorized by the way they generate a return. In this case, annuities can be classified as fixed, fixed indexed, or variable. CSM202101PENSIONPLAN 14 [email protected] www.certifiedsafemoney.com
FIXED ANNUITIES Fixed annuities offer a specified rate of return, and growth takes place tax-deferred. These financial vehicles are primarily known for their safety and their guarantees. Because of that, fixed annuities can be a good option for those who are risk-averse. In return for their safety and protection, the rate of return on a fixed annuity can be somewhat low. This type of annuity can also pay out a regular income stream for a set period, such as ten or twenty years, or even for the rest of the annuitant’s life, regardless of how long that may be. This can provide for a worryfree retirement because you can count on ongoing income. In addition to their set rate and safety, fixed annuities may also offer some added features, such as a death benefit or penaltyfree withdrawals if the owner is diagnosed with a terminal illness or requires long-term care services. It is important to note that the return generated on a fixed annuity can be somewhat low. These returns often are on par with CD or money market rates. So, if you are looking for significant growth, a fixed annuity may not be the best product for you. On the other hand, if you seek the safety of principal, along with a known amount of income over time, then a fixed annuity could be a practical financial vehicle for you. Fixed Indexed Annuities Fixed indexed annuities, or FIAs, are a type of fixed annuity, with the primary difference being how the FIA determines its return. For example, fixed indexed annuities track one or more market indexes, such as the S&P 500. When the underlying index performs well during a given contract year, the annuity is credited with a positive return, usually up to a set maximum or “cap.” But, when the underlying index goes down during a given contract year, the annuity will not lose value. Instead, the account is credited with a guaranteed minimum (usually in the range of 0% to 2%). Some other benefits may also be included in a fixed indexed annuity. For instance, many of these financial vehicles have a death benefit. So, suppose the annuitant (i.e., the income recipient) dies before he or she receives back all their contributions into the annuity. In that case, the remaining funds will be paid to a named beneficiary. (The tax treatment of these benefits differs from life insurance death benefits because the funds from the annuity are not received income tax-free.) There may also be a nursing home or terminal illness waiver on a fixed indexed annuity. The annuitant has to reside in a nursing home facility (usually for at least ninety days) or be diagnosed with a terminal illness. In that case, some or even all the annuity’s account value may be accessed free of a surrender penalty. CSM202101PENSIONPLAN 15 [email protected] www.certifiedsafemoney.com
Variable Annuities Variable annuities track their return based on underlying investments such as mutual funds, stocks, bonds, and other options (your funds are not invested directly in the market, however, but rather through the insurance carrier’s “sub-accounts”). As with other types of annuities, the money inside a variable annuity is also allowed to grow taxdeferred. This provides the opportunity for significant growth in the account, especially if the investments are performing well. Annuity providers may add some riders to a variable annuity that offers certain guarantees such as income, interest credits, and distributions. As with other types of annuities, variable annuities typically offer a variety of income payout options, as well as a death benefit that can be paid to a named beneficiary. Fixed Annuities Fixed Indexed Annuities Variable Annuities Protection of Principal Yes Yes No Guaranteed Income for Life Yes Yes No Minimum Interest Guarantee Yes Yes No Downside Market Risk No No Yes Guaranteed Prior Earnings Yes Yes No Management Fees No No Yes Registered as a Security No No Yes Comparing the Different Types of Annuities IS A “PERSONAL PENSION PLAN” RIGHT FOR YOU? There is undoubtedly a long list of benefits gained by having a “personal pension plan.” But even so, these plans are not suitable for everyone. With that in mind, before setting up your personal pension plan, there are several questions you should ask an annuity advisor to narrow down which type of plan is right for you. These should ideally include the following: - What type of lifestyle do you want to maintain during retirement? - What, if any, other lifetime income sources will you have in retirement (such as Social Security, an employer-sponsored pension, etc.)? - How much income do you need for your essential living expenses, such as housing, transportation, food, and utilities? - How much discretionary income would you like to have for travel, entertainment, fun, or other “non-essential” items? - Do you have any type of “emergency” funds that could help you sustain yourself financially if the unexpected occurred? - When do you plan to enter retirement? CSM202101PENSIONPLAN 16 [email protected] www.certifiedsafemoney.com
CONVERTING YOUR SAVINGS INTO AN INCOME THAT LASTS FOR LIFE While saving money during your retirement years is essential, the reality is that when you reach this time in your life, success is more about income than it is about net worth. That’s because a reliable income stream is necessary for paying your essential – and your non-essential – expenses. Without an income you can rely on, you could spend a considerable amount of time worrying about whether you will have enough income to keep up with your desired standard of living. You may also be concerned about whether your income and assets will last as long as you need them to. Because there is so much uncertainty in the market today, running out of money in retirement is the biggest concern in many retirees’ minds. Many financial advisors today are adept at helping their clients generate a return on their money. But, when it comes to turning those years of savings into income, they may not necessarily be able to guide you on the right path. In fact, in many cases, the financial advisor who helped you build up your savings may not be the right one for converting those dollars into a reliable retirement income stream that lasts for as long as you need it, regardless of how long that may be. A retirement financial advisor can also help you with navigating the many risks that can befall retirees, such as: - Inflation Risk - Sequence (Order) of Returns Risk - Longevity Risk Inflation Risk One of the key risks that retirees can face today is the loss of future purchasing power. This is typically due to rising prices over time. Inflation can play a crucial role in how and how well you can maintain your lifestyle in retirement. And, because people live longer life spans today, you should not overlook inflation in your overall income strategy. For example, taking average inflation of 3.22%, your purchasing power could be cut roughly in half within just twenty years. Stated another way, if you are generating a certain amount of retirement income today, you would need to double that figure to maintain your purchasing power twenty years from now. So, suppose you have not considered inflation into the overall mix. In that case, your other options will typically include spending less and cutting out non-essential items and services so that you can continue to pay your basic living expenses. CSM202101PENSIONPLAN 17 [email protected] www.certifiedsafemoney.com
Sequence/Order of Returns Risk Sequence of returns- often referred to as order of returns - is a risk that not everyone is aware of, but that can cause many financial challenges if it is not accounted for when creating your retirement income plan. Order of returns is defined as the “danger that the timing of withdrawals from a retirement account will have a negative impact on the overall rate of return that is available to an investor.” What exactly does this mean? For one thing, if you suffer a negative return in the years just before or just after starting retirement, it can increase the chance that your portfolio will run out of money sooner. As an example, during your pre-retirement years, a negative return may not have made a significant impact if you generated future positive returns and your portfolio “averaged” positive returns over time. But as you approach retirement—and during the early years that you are withdrawing money from your portfolio—a negative return can wreak havoc on your income plan. This is particularly the case if the negative return is generated sooner rather than later. Here is an example. Comparing two portfolios that each contain $100,000 and each investor is taking a 9% annual withdrawal, both generate an average return of 7%. Likewise, each investor attains annual returns of 7%, -13%, and 27%. However, because of the order in which those yearly returns differ, one of the portfolios runs out of money six years before the other. So, unlike during your accumulation years, the average return during retirement doesn’t necessarily indicate a successful income plan or even one that lasts for as long as you need it to. Year 1 Year 2 Year 3 Avg. Return Years Until Depleted +7% -13% +27% +7% 18 +7% +27% -13% +7% 24 Source: Government Accountability Office (GAO), 2011. CSM202101PENSIONPLAN 18 [email protected] www.certifiedsafemoney.com
Longevity Risk While living a long life can certainly have many benefits, the reality is that a longer life can also be a risk from a financial standpoint. Because people who live longer must face all the other financial risks for a more extended period, longevity is often considered a “multiplier” of all other monetary risks, including: - Market volatility - Inflation - Low-interest rates - Sequence/order of returns - Increased health or long-term care expenses The good news is that there are ways to mitigate longevity risk. One of the best strategies involves using an annuity that will continue to pay out income for the remainder of your lifetime, no matter how long that may be. HOW TO GET YOUR “PERSONAL PENSION PLAN” IN PLACE Putting a personal pension plan in place can provide you with a long list of benefits, including the peace of mind knowing that you will continue to generate income, year in and year out, throughout your retirement. This is the case, regardless of what happens in the stock market, interest rates, or the overall economy. That being said, not all personal pension plans are the same. So, even though a particular plan could be right for someone else, it may not fit in with your specific goals, time frame, and risk tolerance. Therefore, it is essential to work with a retirement income specialist who can take all your needs and match them up as closely as possible to the personal pension plan that best solves them. If you would like to schedule a retirement income strategy session with a personal pension plan expert, feel free to reach out to us directly at [email protected]. We look forward to hearing from you. CSM202101PENSIONPLAN 19 [email protected] www.certifiedsafemoney.com
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