Are Pensions Permanent?

Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Understanding Pension Permanence

1. Pension Annuity Payouts:

  • A pension’s annuity payout, once triggered, is typically permanent.
  • These payouts are designed to provide a steady income stream for the duration of the retiree’s life.

2. Rollover to New Annuity:

Benefits of Rollover to New Annuity

  • Flexibility: Allows for more personal control over the investment.
  • Potential for Growth: Depending on the annuity type, there may be potential for investment growth.
  • Lifetime Income: Guarantees income for life, similar to a traditional pension annuity.

Steps to Rollover Pension to New Annuity

  1. Choose the Right Annuity: Research different annuities to find one that suits your needs.
  2. Consult a Financial Advisor: Professional advice is crucial for making informed decisions.
  3. Initiate the Rollover: Follow the process to transfer your lump sum into the new annuity.

Risks and Considerations

  • Market Risk: Some annuities may be subject to market fluctuations.
  • Fees: Be aware of any fees associated with the new annuity.
  • Inflation: Ensure the annuity can keep up with inflation over time.

Conclusion

Choosing between a pension’s annuity payout and rolling over to a new annuity with a GLWB depends on individual financial goals and circumstances. Both options can provide permanent income solutions, but a rollover to a new annuity offers additional flexibility and control. Contact us today for a free quote.

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Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Shawn Plummer is a Chartered Retirement Planning Counselor, insurance agent, and annuity broker with over 14 years of first-hand experience with annuities and insurance. Since beginning his journey in 2009, he has been pivotal in selling and educating about annuities and insurance products. Still, he has also played an instrumental role in training financial advisors for a prestigious Fortune Global 500 insurance company, Allianz. His insights and expertise have made him a sought-after voice in the industry, leading to features in renowned publications such as Time Magazine, Bloomberg, Entrepreneur, Yahoo! Finance, MSN, SmartAsset, The Simple Dollar, U.S. News and World Report, Women’s Health Magazine, and many more. Shawn’s driving ambition? To simplify retirement planning, he ensures his clients understand their choices and secure the best insurance coverage at unbeatable rates.

The Annuity Expert is an independent online insurance agency servicing consumers across the United States. The goal is to help you take the guesswork out of retirement planning and find the best insurance coverage at the cheapest rates

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