How To Create Your Own Pension

Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Understanding Deferred Annuities with Lifetime Withdrawal Benefits

What is a Deferred Annuity with a Guaranteed Lifetime Withdrawal Benefit?

A deferred annuity with a guaranteed lifetime withdrawal benefit is a financial product designed to function like a personal pension plan. It guarantees a steady income stream for life, much like traditional pension plans offered by employers.

Key Features of Deferred Annuities

  1. Guaranteed Income: Provides a fixed income for life, ensuring financial stability in retirement.
  2. Interest Earnings: The money in the annuity earns interest over time, increasing the value of the investment.
  3. Flexibility and Liquidity: Offers various options for withdrawals and changes to the plan.
  4. Lump-Sum Death Benefit: In the event of the annuitant’s death, a specified amount is paid out to beneficiaries.
  5. Funding Options: Can be funded using cash or retirement accounts like 401k, 401a, IRA, or 403b.

How to Set Up Your Personal Pension Plan

Steps to Create a Deferred Annuity:

  1. Choose the Right Annuity: Research different annuity providers and plans to find one that meets your financial goals.
  2. Determine Funding Source: Decide whether to use existing retirement accounts or cash to fund the annuity.
  3. Plan the Deferral Period: The longer you defer the annuity, the higher the income you can expect in the future. Carefully plan this period based on your retirement goals.
  4. Consult a Financial Advisor: Before making any decisions, it’s advisable to consult with a financial expert to understand the implications and benefits.

Comparison of Deferred Annuity and Other Retirement Plans

FeatureDeferred Annuity401k/IRATraditional Pension
Income GuaranteeLifetimeDependent on account valueLifetime
Funding SourceCash/Retirement AccountsPayroll DeductionsEmployer Funded
Interest EarningsYesVariesNot Applicable
Death BenefitLump SumVariesUsually None


Creating your own pension through a deferred annuity with a guaranteed lifetime withdrawal benefit offers a secure and flexible way to ensure financial stability in retirement. By understanding the key features and steps involved in setting up such an annuity, you can effectively plan for a steady income stream in your later years. 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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