What is a Good Pension?

Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

What is a Good Pension Plan?

A good pension is often considered to be a personal private pension plan, specifically a deferred income annuity. This type of pension allows individuals to have more control over their retirement savings, as opposed to relying solely on a company-provided pension.

Advantages of Deferred Income Annuities

  1. Control: The pension owner has direct control over their retirement funds.
  2. Flexibility: Allows for personalization based on individual retirement goals and financial situation.
  3. Stability: Offers a steady income stream in retirement, which can be a reliable supplement to other retirement incomes.
  4. Tax Benefits: Contributions to these plans may come with tax advantages.

Example

Consider a scenario where an individual opts for a deferred income annuity. They contribute a portion of their income over their working years. Upon reaching retirement, they start receiving a fixed monthly income, providing financial stability and independence from employer-based pension plans.

Comparison of Pension Types

Pension TypeControl LevelIncome StabilityFlexibilityDependency on Employer
Company PensionLowHighLowHigh
Deferred Income AnnuityHighHighHighLow
Personal SavingsHighVariableHighNone

Conclusion

In summary, a good pension, particularly a personal private pension plan via a deferred income annuity, is beneficial for its control, flexibility, and stability. It offers a more personalized approach to retirement planning, ensuring financial security in 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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