Can a Small Business Have a Pension Plan?

Shawn Plummer

CEO, The Annuity Expert

What is a Personal Pension Plan for Small Business Owners?

A personal pension plan for small business owners is essentially a retirement savings plan. One effective method is purchasing an annuity with a Guaranteed Lifetime Withdrawal Benefit (GLWB). This type of annuity provides a predictable and stable income stream during retirement.

How Does a Personal Pension Plan Work?

  • Purchase of Annuity: The business owner invests in an annuity contract.
  • Guaranteed Lifetime Withdrawal Benefit (GLWB): This feature guarantees a specific amount of annual income during retirement, regardless of the market performance.
  • Income Forecast: The GLWB allows for precise forecasting of retirement income.

Benefits of Personal Pension Plans for Small Business Owners

  1. Stable Income: Offers a predictable, steady income in retirement.
  2. Longevity Protection: Provides income throughout the owner’s lifetime.
  3. Market Protection: Income is less affected by market volatility.

Comparing Retirement Options for Small Business Owners

Retirement OptionStability of IncomeMarket Risk ExposureLongevity Protection
Personal Pension PlanHighLowHigh
Traditional 401(k) PlanMediumHighMedium
Savings AccountLowLowLow

Conclusion

A small business owner can indeed have a pension plan, typically through purchasing an annuity with a Guaranteed Lifetime Withdrawal Benefit. This provides a reliable and forecastable retirement income, offering stability, protection against market volatility, and longevity assurance. It’s an effective way to secure financial comfort in the later years of life.

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Shawn Plummer

CEO, The Annuity Expert

Shawn Plummer is a licensed financial professional, 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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