What Is a Personal Pension?

 

A personal pension is a retirement strategy that transforms your existing savings—such as 401(k), 403(b), IRA, or TSP funds—into a guaranteed stream of income for life. Unlike employer-sponsored pensions, which are becoming increasingly rare, personal pensions are privately structured using financial products that guarantee income regardless of market conditions or lifespan.

 

Think of it as creating your own predictable, reliable paycheck—one that continues even if you live to age 100 or beyond.

 

Why Guaranteed Lifetime Income Matters

 

Most retirees today must manage their own savings and withdrawals—but that can be stressful and risky. A personal pension eliminates the guesswork and gives you confidence that your essential expenses will always be covered.

 

Here’s what makes it powerful:

• ✔️ You’ll never outlive your income
• ✔️ You’ll reduce your market exposure
• ✔️ You’ll make retirement decisions with clarity—not fear
• ✔️ You’ll protect your spouse or loved ones with joint lifetime options

Pros and Cons of Lifetime Income Tools

✅ Advantages:

• Peace of mind with predictable monthly income.
• Protection from market downturns and sequence-of-return risk.
• Customizable options to cover spouses or leave a legacy.
• No investment management required—income is automated.

⚠️ Considerations:

• May limit liquidity—some products restrict early withdrawals.
• Income payments may not keep pace with inflation unless indexed.
• Products vary—not all annuities are created equal, so guidance is essential.

That’s where our experience comes in. At Protection Plus, we only recommend strategies that are aligned with your goals, lifestyle, and risk tolerance.

 

What Types of Products Can Create Personal Pensions?

 

There are several financial tools that can be used to create guaranteed lifetime income. These include:

 

🔹 Fixed Indexed Annuities with Income Riders

• Offer guaranteed income plus the opportunity to grow based on index performance.
• Protect your principal while providing future paychecks.

🔹 Immediate Annuities (SPIAs)

• Begin paying income right away and are often used for people retiring immediately.
• Offer higher payouts, but with less flexibility.

🔹 Deferred Income Annuities (DIAs)

• Provide income at a future date, allowing for higher payments.
• Ideal for planning income 5–10 years ahead.

🔹 Hybrid Annuities with Long-Term Care Features

• Combine lifetime income with built-in long-term care benefits.
• Great for those concerned with healthcare costs in later life.

We’ll help you understand which vehicle is right for your situation—and ensure it complements the rest of your retirement plan.

 

Real-World Example: Meet Linda and George from Carlsbad

 

Linda (62) and George (65) had saved diligently in their 401(k)s but were nervous about retiring in a volatile market. After reviewing their income needs and goals, we created a personal pension using a fixed indexed annuity with a joint lifetime income rider.

 

Now, they receive $4,250/month guaranteed for the rest of both of their lives—no matter what the market does. They sleep better at night knowing their mortgage, groceries, and healthcare expenses are fully covered.

 

This is the kind of financial freedom we help families across San Diego achieve every day.

 

Is a Personal Pension Right for You?

 

If you’re within 5–10 years of retirement—or already retired—it’s time to explore your income options. A personal pension could be your foundation for a confident, comfortable future.

 

Don’t leave your personal pension to chance—take control of your financial future today.

 

Contact Protection Plus Insurance for a free consultation and expert guidance on your retirement planning. Call us at (858) 352-6535 or send an email to glenn@protectionplusins.com to schedule your appointment.

 

 Let us help you build a secure and prosperous retirement!

 

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